Saturday, October 8, 2022

Telenor sells 30% stake in its infrastructure to KKR and partners

Telenor is establishing a subsidiary that will own the passive fibre assets in Norway. This includes 130,000 km of cables, connecting upwards of 560,000 homes. The company’s assets will be transferred from Telenor Norway in a demerger process prior to completion of the transaction. 

Under the plan, Telenor will divest a 30% share in the new company to a consortium led by KKR, investing through its Core Infrastructure strategy. The consortium includes Oslo Pensjonsforsikring as a co-investor. The sales price is approximately NOK 10.8 billion. 

Telenor Norge will be the only customer of the new  Telenor Fiber AS. All operational processes remain under full Telenor control. The business generated a proforma EBITDA of NOK 1.7 billion in 2021.

Telenor said it has conducted an extensive consultation process with the relevant government authorities, who have given their overall feedback that the transaction safeguards critical security and regulatory considerations.

“We are executing on the strategy presented at the Capital Markets Day in September. This transaction highlights the value in our infrastructure and unlocks capital to support continued high fibre roll-out in Norway, and we are bringing in strong investors with a long-term horizon. Following the transaction, Telenor will propose that parts of the proceeds are used for share buy backs. We believe this transaction benefits our stakeholders while safeguarding future investments in Norway’s fibre”, says Tone Hegland Bachke, EVP and CFO in Telenor Group.

“We are very excited to be investing long-term capital behind Norwegian infrastructure. KKR has significant experience within telecom infrastructure investing, and we look forward to supporting Telenor with its fibre strategy in Norway”, says Julian Barratt-Due, Director, European Infrastructure at KKR.

Telenor intends to use parts of the proceeds for share buybacks to mitigate the effects of the new minority interests.

Saudi Arabia's stc forms a new infrastructure company 

Saudi Arabia's stc Group launched Center3 Company, a new company that will be the owner of the digital infrastructure assets owned by stc Group, including data centers, submarine cables, international points of presence, and internet exchange points.Center3 Company aims to be the digital regional center for the Middle East and North Africa, operating a group of carrier-neutral data centers and a provider of international communication for the telecommunications...

América Móvil spins off its towers business

América Móvil completed the spin-off of its telecommunications towers and other associated infrastructure in certain Latin America countries into a new, independent company called Sitios Latinoamérica, S.A.B. de C.V. Sitios Latam is a Mexican company, independent from AMX’s management and capital structure. Its business focuses on the construction, operation and marketing of towers and other structures for the installation...

Cirion spins out of Latin American operations from Lumen

Cirion, previously the Latin American operations of Lumen Technologies, officially launched as an independent company with approximately 86,000 kms of fiber, an extensive subsea cable network, and data centers in major economic centers across Central and South America.Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, acquired the Cirion assets for US$2.7 billion. Lumen acquired the Latin American...

Telefónica and partners establish Bluevia for wholesale FTTH in Spain

Telefónica Group, Crédit Agricole Assurances, and Vauban Infrastructure Partners agreed to establish a joint venture called Bluevia Fibra to deploy and operate a FTTH network in Spain, mainly in rural areas and with limited overlap with other networks.The consortium formed by CAA/Vauban will acquire a 45% stake in Bluevia from Telefónica España through an upfront consideration of €1,021 million in cash, valuing 100% of Bluevia at €2,500 million,...

SpaceX launches Intelsat Galaxy 33 and 34 GEO satellites

Intelsat Galaxy 33 and Galaxy 34 geosynchronous communications satellites were successfully launched aboard SpaceX’s Falcon 9 rocket from Cape Canaveral Space Force Station in Florida at 7:07 p.m. EDT on October 8th.

Galaxy 33 will be the replacement satellite at 133 degrees west once it is in service in early November. The satellite will provide service continuity for distribution to cable headends throughout the United States.

Galaxy 34 will replace Galaxy 12 at 129 degrees west once it is in service in late 2022. This satellite will serve as the new restoration payload for Intelsat’s Galaxy cable distribution customers, allowing the previous restoration role at 121 degrees west to be converted to a core cable distribution satellite.

Both satellites were built by Northrop Grumma.

Lumentum expands manufacturing in Slovenia

Lumentum has expanded its manufacturing operations and advanced R&D in Škoflijica, Slovenia for specialty optical fibers that are essential components of many Lumentum products. This expansion more than doubles Lumentum's manufacturing and R&D footprint in Slovenia.

The state-of-the-art facility includes a Center of Excellence for advanced R&D to develop fundamental laser component technology in addition to products. The site includes a 137,000 square foot plot with plans for further future expansion to align capacity with the growing demand for specialty fibers in industrial, communications, and other growing new applications.

"I am very excited about the manufacturing and advanced R&D expansion in Slovenia," said Alex Schoenfelder, senior vice president and general manager of commercial lasers. "Specialty optical fibers are a key enabling component for industrial fiber lasers and increasingly for other new applications in the industrial, life sciences, and communications markets. Our team in Slovenia has given us unique fibers that enable differentiated performance and cost."

RIP: Ryan Ding, 53, head of Huawei's Enterprise and Carrier Groups

Huawei noted the unexpected death of Ryan Ding Yu, president of both its enterprise business group and its carrier business group, on Friday at the age of 53. He joined the company in 1996 and served in a number of top executives roles in recent years, including on the deputy chairman of the supervisory board, and president of the corporate leadership management department.

Local media report that Mr. Ding collapsed after taking part in a 28km run.

"It is with deep sadness that we confirm that Mr. Ding Yun, Vice Chairman of the Board of Supervisors of the Company, passed away in the early hours of October 7, 2022, aged 53, due to sudden illness."