OSLO, Norway-Telenor has acquired 100 percent of Pannon GSM in Hungary by acquiring the stakes held by KPN Telecom, Sonera and Tele Danmark Communications for a total $877 million. Telenor held 25.78 percent of the Hungarian carrier before the acquisition.
Pannon GSM has net debt of about $218.9 million. The acquisition will be paid in cash and financed through available credit facilities, Telenor said.
“The company is in a growth phase and by gaining control, we believe that we can contribute to further growth and success for the No. 2 player in Hungary,” said Arve Johansen, chief executive officer of Telenor Mobile.
KPN has a 44.7-percent stake in Pannon, Sonera holds 23 percent and TDC has 6.6 percent. The sale will provide much-needed relief to the heavily indebted Sonera of Finland and KPN of the Netherlands. Sonera’s shares hit new lows earlier this month amid high debt from third-generation license acquisitions. The company is trying to sell its 2G assets to help pay for 3G lice
