Telenor Buys Tele2 Denmark

FORENEBU, Norway -- Telenor has entered into an agreement with Tele2 for the acquisition of its subsidiary Tele2 Denmark for a price representing an enterprise value of DKK 835 million. "The acquisition of Tele2 Denmark enables us to secure the number-two position within both broadband and mobile in Denmark," said Morten Karlsen Sørby, Head of Telenor Nordic.

Tele2 Denmark has, as of year end 2006, 227.000* mobile customers, including 100.000 post-paid subscribers, 75.000 broadband customers, 206.000 fixed-line customers. This acquisition boosts Telenor's Danish mobile market share from 23,3 to 27,3** percent and broadband market share from 10 to 14 percent.

"Our Danish organisation is performing strongly, and this acquisition is a tool to ensure continued progress," said Morten Karlsen Sørby, Executive Vice President and Head of Telenor Nordic. "To be successful in the telecom industry, you need to secure sufficient size and this acquisition is an opportunity to further utilise scale advantages in mobile as well as broadband in Denmark and the Nordics," said Morten Karlsen Sørby.

"Over the last ten years, Tele2 Denmark has provided good service to customers by offering competitive products and services. As the largest challenger in the Danish telecom market, we are now looking forward to build on this foundation," said Henrik Clausen, Head of Telenor in Denmark. "For the customers, this will be an easy transfer, since Tele2 Denmark's systems are easily adapted to our other activities. Tele2 is already a significant customer through its capacity lease agreements of Sonofon's mobile network, and the DSL infrastructure is well-suited for integration with Cybercity's existing network," said Henrik Clausen.

Telenor Group (Nasdaq: TELN)