Telia To Sell Carrier Operation To Polhem Infra; To Reinstate Original Dividend; Stock Up

Swedish telecom company Telia Co. (0H6X.L,TLSNY.PK) announced Tuesday that it has reached an agreement with Polhem Infra for the sale of its international carrier business, Telia Carrier, for a value of 9.45 billion Swedish kronor on a cash and debt free basis.

Telia also entered a long-term strategic partnership with Telia Carrier, securing continuous network solutions to Telia's customers.

Further, Telia Board of Directors has decided to propose an additional dividend of 0.65 SEK/share, bringing the total dividend for 2019 back to 2.45 SEK/share which was originally proposed in January this year.

Regarding the proposed sale of Telia Carrier, the deal is subject to regulatory approvals in, inter alia, the EU and the US, and is expected to be completed during the first half of 2021.

As of September 30, the Telia Carrier operation will be regarded as assets held for sale in Telia Company's accounting.

Telia noted that the change of ownership will enable Telia Carrier, with its 530 employees, would drive a level of investment in network development, services and customer care programs.

The company said the majority of the proceeds from the sale will be used to strengthen balance sheet.

In Stockholm, Telia shares were trading at 38.74 kronor, up 4.7 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT