ATLANTA-BellSouth Corp. said it agreed to sell its stake in Danish wireless operator Sonofon for just more than $600 million to Telenor. BellSouth will receive about $501 million for its 46.5-percent stake and $103 million in repayment for its shareholder loan and accrued interest.
Telenor currently owns 53.5 percent of Sonofon and shares joint control with BellSouth. Following the completion of the sale, Telenor will be the full owner of the operator, which had nearly 1.1 million subscribers at the end of September. Sonofon is the second-largest operator in Denmark.
The transaction is expected to close by the first half of 2004 pending regulatory approval by the Danish Telecom Agency and European competition authorities. BellSouth said it expects to record an after-tax gain of about $285 million in the first half of 2004.
Many U.S. telecom companies are selling their stakes in foreign operators to reduce debt and refocus on their core North American businesses. AT&T Wireless Services Inc. sold its stake in an Indian mobile operator last week.
