Telenor acquires the remaining stakes in leading Montenegrin mobile operator ProMonte

After giving effect to the acquisition, Telenor will own 100 per cent of the shares in ProMonte. The purchase price is EUR 64.8 million, valuing ProMonte to EUR 116 mill on a 100 per cent basis. The company had a negative net interesting bearing debt of EUR 2.9 mill (Cash 4.6 mill. and interest bearing debt of EUR 1.7 mill.)

Telenor first entered the Montenegrin mobile market in 1995 as part of the Greek-Norwegian consortium ETL (European Telecom Luxembourg), a joint venture between Telenor Mobile Communications AS, W-Com Investments, Westsouth Telecom and TopStar Shipping and Trading. ETL and PTT of Montenegro jointly established ProMonte and obtained a licence for mobile operation in 1996. ProMonte was the first to launch commercial mobile operation in Montenegro in July 1996. ProMonte is still the leading operator in Montenegro with 273.000 subscribers, constituting a 57 per cent market share at the end of June 2004. Montenegro has a population of 618.000 and a mobile penetration of approximately 77 per cent end of June 2004.

"ProMonte is a well-run and cost efficient company with a sound EBITDA margin. Obtaining a majority stake in the company is in line with Telenor's strategy of taking control or exiting mobile operations where we already have an owning position," commented Arve Johansen, Deputy CEO, Telenor.

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