en.Wedoany.com Reported - Telenor Group has agreed to acquire a controlling stake in Swedish broadband provider Bahnhof, valuing the company at SEK 6.1 billion (EUR 552.7 million). The acquisition will increase Telenor's share of the consumer market from approximately 15% to around 27%, as part of the group's strategy to focus more on the Nordic region.
Upon completion of the acquisition, Telenor will become Sweden's second-largest fixed broadband provider, moving up from third place to surpass Tele2. However, in terms of total revenue and overall customer base, Telenor Svige still lags behind market leader Telenor.
The transaction is subject to regulatory approval, with the review process expected to take four to eight months. Upon completion, Telenor will be obligated to make a mandatory cash offer to all Bahnhof shareholders.
Telenor stated that it is the only telecom operator with a significant presence in all four Nordic markets. The Swedish market is the group's largest and also brings the most growth for Telenor. As it gradually exits Asian markets, Telenor Group's focus has shifted back to its Nordic home base. The company announced a major restructuring at its Capital Markets Day in May to reflect its strategy, with the dissolution of the current Nordic business unit level and the elimination of the independent Asian division, allowing Nordic country CEOs to join the group management.
Founded in 1994, Bahnhof serves over 500,000 consumers and approximately 15,000 business customers. The company's assets include its own network infrastructure, open network access rights, and five colocation data centers.
Tele2, which is set to be overtaken, has also experienced significant upheaval. Since French group Iliad indirectly became its largest shareholder with a 19.8% stake in October last year, Tele2 has seen multiple changes in key positions, with adjustments in both February and May. Tele2 has also announced a 15% workforce reduction.
After the transaction, Bahnhof will continue to operate under its own brand, maintaining its focus on privacy, security, and technical expertise. Telenor plans to integrate the capabilities of both parties while strengthening Bahnhof's market position. Jonas Edén, CEO of Telenor Sweden, stated that this is an important step for Telenor's business in Sweden. Bahnhof CEO Jon Karlung said that by joining Telenor, the company gains the scale needed to compete more effectively in existing and emerging market segments. He will join Telenor as part of the transaction, along with co-founder Andreas Norman.
