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Telenor agrees majority purchase of DNA
Posted on Wednesday, 10 April 2019 13:46
Norwegian telecommunications group Telenor has agreed to acquire a 54.1 per cent stake in Finland-based rival DNA for EUR 1.49 billion.
Due to the size of the transaction, the purchaser will have to launch a public tender offer for the remaining shares in the company following completion.
Reuters picked up on the announcement and said the chairman of telecoms provider DNA will comment on Telenor’s offer once a formal offer has been presented to shareholders.
The current proposal was published despite Telenor not having spoken with the potential target beforehand.
An offer of EUR 20.90 per item of stock held has been tabled by the buyer, which also said the takeover of the remainder of the group will be on the same terms.
The deal represents a bid premium of 7.4 per cent to the target’s close of EUR 19.46 on 8th April, the last trading day prior to the announcement.
Telenor is picking up the stake from stockholders Finda Telecoms and PHP Holdings, which hold 28.3 per cent and 25.8 per cent of the company, respectively.
According to the statement, it has entered into separate agreements with the two largest backers.
The transaction is subject to approval by the vendors shareholders and the green light from regulators.
DNA said, despite the offer, its operations will continue as normal and the deal has no impact on customer services.
The company is billed as the third-largest mobile operator in Finland, with 2.90 million subscribers and 28.0 per cent of the market share in a country that has the highest mobile data usage in the world, according to Bloomberg.
DNA is also the second-biggest provider of broadband services and the number one cable-television group.
It generated net sales of EUR 913.50 million in the year ended 31st December 2018, up 3.1 per cent on EUR 886.10 million in the previous 12 months.
Earnings before interest, taxes, depreciation and amortisation totalled EUR 283.60 million for the last year, an increase of 4.1 per cent from EUR 271.80 million in 2017.
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