Telenor Buys Vodafone Sweden

Vodafone has agreed to sell its 100% interest in Vodafone Sweden to Telenor, the pan-Nordic telecommunications operator. Vodafone Sweden is being sold for an Enterprise Value of US$1.25 billion, implying an Enterprise Value to EBITDA multiple of 11x for the financial year ending 31 March 2006. Net cash proceeds to Vodafone after assumption of net debt by Telenor will be approximately US$1.17 billion.

Commenting on the transaction, Arun Sarin, Chief Executive of Vodafone, said "We have a good business in Sweden, but the particular industry structure and regulatory environment means that it makes more sense for our customers, our employees and our shareholders for a pan-Nordic player like Telenor to own the company. I'm sure that Telenor will be able to serve our customers well, particularly in the corporate sector, given its presence across the Nordic region."

Vodafone and Telenor have agreed the terms of a Partner Network Agreement in Sweden, allowing Vodafone Sweden and Vodafone customers to continue to benefit from Vodafone's global brand, products and services in Sweden.

As a result of the transaction, Vodafone will record an impairment charge of approximately

Posted to the site on 1st November 2005