STOCKHOLM, Sweden and OSLO, Norway, June 1, 2001 (PRIMEZONE) -- Telenor (Nasdaq:TELN) and British Telecom (BT), who each presently own 50% of Telenordia, have entered into an agreement whereby Telenor will take over the company in Sweden. At the same time, BT will establish a new company that will build further on Telenordia's activities and supply concert services (international calling and data communications). By doing this, Telenor is also released from their shareholder agreement with BT and can be a more active player in the Swedish market.
The agreement between Telenor and BT means that, by the end of September, Telenor will take over Telenordia AB. From the same point in time, BT's share of activities and assets from the jointly owned company will be transferred to a newly established business enterprise. In order to balance the agreement Telenor will pay to BT a gross cash consideration of ten million pounds.
Through the agreement with BT, Telenor will retain the Telenordia name. The company will principally focus on telephony, data and Internet services for the corporate market, as it already does today. In accordance with an agreement with BT, Telenordia will continue to have the main customer base for Nordicom's products (a Nordic data communications network for the corporate market).This agreement puts Telenor in a better position to coordinate its expansion into Sweden. "At Telenor, we're happy that we have resolved the Telenordia ownership structure so that we can further develop the company. As the owner of the future Telenordia, Telenor will focus on synergies and possibilities in the Swedish market with a view to developing long-term profitability in the company. Telenordia will also be an important part of our Nordic strategy," says Jon Fredrik Baksaas, Senior Executive Vice President in Telenor.
BT will remain on the Telenordia board until September 30, 2001. Jon Fredrik Baksaas, Senior Executive Vice President, will assume the post of Chairman of the Board, succeeding Morten Karlsen Sorby.
Telenor
Telenor is one of Norway's leading value-added companies with a turnover of NOK 37.6 million in 2000, and with approximately 20,200 man-years in Norway and abroad. In Norway, Telenor is the market leader with respect to telecommunications, data services and media transfer. Internationally, Telenor's initiatives are increasing, especially regarding mobile solutions, the Internet, television distribution and satellite communications. Telenor shall at all times provide their customers with high-quality solutions at competitive prices, at home and abroad, and shall contribute to increased value for our shareholders. Telenor is listed on the Oslo Stock Exchange (Olso Bors (TEL)) and on Nasdaq in New York (TELN)