Telenor buys more shares in Pannon GSM
Fornebu
2 minute read
Norwegian Telenor has bought part of the shares Tele Danmark has sold of its ownership shares in Pannon GSM in Hungary for approx USD 53 million (approx 400 MNOK). The present value of Pannon GSM indicates that the value of Telenors prior investment (approx USD 38 mill) in the company has increased more than five times to approx USD 200 million.
"When Tele Danmark put their shares for sale to an acceptable price, we where happy to buy them, and it fits well into Telenors long term strategy for Hungary," says Arve Johansen, Managing Director in Telenor International. "This transaction demonstrates the growing value of Telenors international mobile communication activities," Johansen says.
Pannon GSM was established in 1993 and opened their mobile network in March 1994. They have gained increased market share, and with 325.000 subscribers at the end of June 1998 they have around 40% share of the Hungarian mobile market. Pannon GSM has approx. 600 employees, and had a revenue of approx. USD 159 million in 1997 with a profit of approx. USD 6 million.
The reason for the sale of Tele Danmarks share is their partnership with Ameritech, which, via its ownership share in the Hungarian telecommunications company Matáv, is co-owner of Westel, a mobile company which competes with Pannon GSM. Tele Danmark has sold approx. 70 per cent of its 23.2 per cent ownership share in Pannon GSM for approx. USD 160 million. The shares has been acquired by three of the current co-owners in Pannon GSM: Telenor (Norway), Sonera (Finland) and PTT Telecom (The Netherlands). The transaction is subject to approval from the Hungarian authorities. With this transaction Telenor has increased their ownership from 20.3 per cent to 25.8 per cent.
Pannon GSM was established in 1993 and opened their mobile network in March 1994. They have gained increased market share, and with 325.000 subscribers at the end of June 1998 they have around 40% share of the Hungarian mobile market. Pannon GSM has approx. 600 employees, and had a revenue of approx. USD 159 million in 1997 with a profit of approx. USD 6 million.
The reason for the sale of Tele Danmarks share is their partnership with Ameritech, which, via its ownership share in the Hungarian telecommunications company Matáv, is co-owner of Westel, a mobile company which competes with Pannon GSM. Tele Danmark has sold approx. 70 per cent of its 23.2 per cent ownership share in Pannon GSM for approx. USD 160 million. The shares has been acquired by three of the current co-owners in Pannon GSM: Telenor (Norway), Sonera (Finland) and PTT Telecom (The Netherlands). The transaction is subject to approval from the Hungarian authorities. With this transaction Telenor has increased their ownership from 20.3 per cent to 25.8 per cent.