On 8 February, Telenor announced its offer for all outstanding shares in the broadband provider Glocalnet, for a cash consideration of SEK 4 per share. On 14 March, the Swedish competition authorities approved the acquisition, and the initial offer period expired on 23 March.
"We are pleased that so many shareholders have accepted our offer. We interpret that as confirmation that our offer was seen as favourable," said Morten Karlsen Sørby, Executive Vice President and Head of Telenor Nordic. In order to enable shareholders who might have forgotten about the deadline for accepting the offer, we have now decided to extend the offer period until 21 April," said Karlsen Sørby.
Glocalnet has a strong standing in the budget segment, and Telenor has been a shareholder in the company since 2002. Following a period of rapid growth at Glocalnet, Telenor now wants to secure full control of the company.
"We are determined to maintain the company's position in the market and aim to stimulate further growth, however, seeing that we have already secured more than 90 per cent of the total shareholding we will now commence the process of delisting the company. This will enable us to manage Glocalnet within our own reporting structure," ended Karlsen Sørby.
Glocalnet will be part of Telenor's comprehensive broadband offering in the Swedish market. The broadband products will be marketed as independent solutions and in combination with mobile and broadband telephony services. Glocalnet's products will be part of Telenor's distribution chain and be made available at Telenor sales outlets. The company's brand and profile will remain unchanged.
Glocalnet develops and markets a broad range of telecommunications services, including fixed-line and mobile telephony, but it is primarily through the sale of broadband services that the company has made its name. The company currently has 104,000 broadband customers and is one of Sweden's fastest growing broadband providers.
At year-end 2005, Glocalnet had a turnover of SEK 1.09 billion, and a negative EBITDA of SEK 68.6 million. At the end of 2005, the company had net cash reserves amounting to SEK 184 million. Glocalnet has approximately 115 employees, its headquarters is in Stockholm, and the company is listed on the O-list at Stockholm Stock Exchange.
For more information, please contact:
Pål Kvalheim, Vice President Communications
The offer referred to in this press release is not valid in the USA, Australia, Canada or Japan.
Telenor Nordic, Tel.: +47 970 44 970