Telenor to sell Conax AS to Kudelski for NOK 1,509 mn

Norwegian telecom operator Telenor Broadcast on Wednesday announced that it has entered into a definitive agreement to sell its subsidiary Conax AS for NOK 1,509 mn with Swiss-based Kudelski Group.

The sale of Conax marks an important step for Telenor Broadcast in pursuing its stated strategy of focusing on its core activities within the Telenor Group. The acquisition of Conax by Kudelski Group will benefit Conax' customers, including Telenor Broadcast-owned Canal Digital in the Nordics.

"The Conax operation has been very successful with a strong track record of international growth and high profitability. However, as competition increases and new technologies emerge, achieving global scale and enhancing market share will be key determinants of future success," said Patrik Hofbauer, SVP and CEO of Telenor Broadcast.

In 2013, Conax had revenues of NOK 627 mn, EBITDA of NOK 243 mn and CAPEX of NOK 44 mn.

The transaction is expected to be finalized in April 2014, and Telenor will report a gain of approximately NOK 1.3 bn.