Telenor Group | July 8, 2011 | Press Release
Telenor has reached an agreement with Agder Energi to acquire the fibre companies LOS Bynett AS and Bynett Privat AS.
– We are very satisfied that Telenor is taking over and developing the two companies’ broadband initiative in Vestfold and the Agder counties. This sale is in line with our group strategy, and we are confident that a more optimal development is thus secured for these enterprises in the time ahead, says Unni Farestveit, group director of markets in Agder Energi.
LOS Bynett builds fibre-optic high-speed networks for the corporate market and the public sector, while Bynett Privat supplies private households. All 23 employees in Vestfold and the Agder counties will keep their jobs.
– Telenor has stated that they want to invest in fibre development and that the employees of LOS Bynett and Bynett Privat are an important resource in these efforts, says Ms Farestveit.
– Telenor’s aim is to further develop these enterprises as part of Telenor’s fixed broadband activities in Norway. We have great faith in the region comprising the Agder counties and Vestfold, and Telenor has already established a regional office in Kristiansand and a security centre in Arendal. The strong local business community, population growth and strong purchasing power make this an attractive region, says Mr Ragnar Kårhus, CEO of Telenor Norway.
Telenor Norway, along with its subsidiary Canal Digital Kabel TV AS, is a major player in the broadband field, but currently mainly supplies services via DSL and coax technology (copper and cable). The acquisition of LOS Bynett and Bynett Privat strengthens Telenor’s position in the fibre market in an attractive part of the country. The enterprises have 9,600 private customers and approx. 900 corporate customers. Both these customer bases are of a high quality. The companies had revenues of NOK 89 million in 2010. The corporate customer base accounted for almost 50 per cent of the revenue.
– Los Bynett and Bynett Privat will carry on with the same management and range of services as today. In a more long-term perspective we will consider integration of the companies with our other businesses and services, says Mr Kårhus.
The price to be paid for the two companies is NOK 300 million. The acquisition is contingent on approval from the Norwegian Competition Authority.
