Swedish telecoms giant Telia sells international carrier business for $1bn
Swedish telecoms group Telia Company today said it has agreed to sell its international carrier business to infrastructure firm Polhem Infra for 9.5bn Swedish krona ($1.1bn).
Telia, which is led by British media veteran Allison Kirkby, said it has simultaneously entered into a long-term partnership with its carrier division to ensure continued network provision for its customers.
The sale marks the latest efforts by Kirkby, who took over as chief executive in May, to slim down the company’s operations.
In June the firm sold its stake in Turkcell following a long-running dispute between its main shareholders.
Kirkby, who formerly led Danish telecoms firm TDC and serves as a non-executive director on BT’s board, said the proceeds of the sale would be used to strengthen Telia’s balance sheet.
”The divestment of Telia Carrier highlights the value Telia has built in its digital infrastructure – and today we are able to crystallize some of that value,” she said.
“As a consequence, we can now fully concentrate on our Nordic and Baltic footprint, while we at the same time have secured future access for our customers to Telia Carrier’s world-leading solutions, through a long-term strategic partnership.”
The takeover marks the first investment in digital infrastructure for Polhem Infra, which is jointly owned by three funds that manage money in Sweden’s state pension system.
As a result of the sale, Telia said it was proposing an additional dividend of 0.65 Swedish krona per share, bringing the total dividend for 2019 back to 2.45 krona per share.
The company had originally proposed that payout in January, but revised its plans down due to the coronavirus outbreak.