March 21, 2018 / 7:09 AM / a month ago

BRIEF-Telenor in EUR 2.8 bln deal to sell central, eastern Europe assets

March 21 (Reuters) - Telenor Asa:

* TELENOR AGREES TO SELL ITS CENTRAL AND EASTERN EUROPEAN ASSETS TO PPF

* ‍BOARD TO PROPOSE SPECIAL DIVIDEND OF NOK 4.40 PER SHARE​

* ‍AGREEMENT TO SELL ITS ASSETS IN CENTRAL AND EASTERN EUROPE (CEE) TO PPF GROUP FOR EUR 2.8 BILLION (AROUND NOK 27 BN)​

* ‍TRANSACTION INCLUDES TELENOR’S WHOLLY-OWNED MOBILE OPERATIONS IN HUNGARY, BULGARIA, MONTENEGRO AND SERBIA AND TECHNOLOGY SERVICE PROVIDER TELENOR COMMON OPERATION​

* ‍CEE OPERATIONS CONTRIBUTED APPROXIMATELY NOK 11.8 BILLION OR 9% OF TELENOR GROUP’S REVENUES AND NOK 4.1 BILLION OR 8% OF EBITDA IN 2017​

* ‍INCLUDING PROPOSED ORDINARY DIVIDEND OF NOK 8.10 PER SHARE FOR 2017, TOTAL PROPOSED PAY-OUT TO SHAREHOLDERS IN 2018 WILL BE APPROXIMATELY NOK 19 BILLION​

* ‍AS PREVIOUSLY COMMUNICATED, COMPANY ALSO PLANS TO ASK AGM FOR A NEW BUYBACK MANDATE TO SECURE FLEXIBILITY FOR ADDITIONAL SHAREHOLDER REMUNERATION GOING FORWARD​

* ‍OUR PROPOSED USE OF PROCEEDS BALANCES OUR AIM TO DELIVER ATTRACTIVE SHAREHOLDER REMUNERATION, WHILE PRESERVING STRATEGIC FLEXIBILITY​

* ‍IN COMING YEARS, WE BELIEVE THERE WILL BE VALUE ACCRETIVE OPPORTUNITIES WITHIN OUR CORE BUSINESS AREAS AND GEOGRAPHIES​

* ‍PPF GROUP IS LARGEST PRIVATE INVESTMENT GROUP IN CEE​

* ‍AGREED TRANSACTION PRICE CORRESPONDS TO AN EV/EBITDA MULTIPLE OF 6.4 BASED ON 2017 EBITDA​

* ‍TRANSACTION IS ESTIMATED TO RESULT IN AN ACCOUNTING GAIN AFTER TAX OF AROUND 3 NOK BILLION​ Source text for Eikon: Further company coverage: (Reporting By Terje Solsvik)

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