TAMPA, Fla. — Norwegian state-run telco Telenor announced plans Nov. 16 to sell its satellite division to Space Norway, a part of the country’s space agency, in a deal value around $216 million.
The Norwegian government fully owns Space Norway and is looking for parliamentary permission for the capital needed to finance the transaction, which might help consolidate the country’s space interests.
“The acquisition will contribute to the establishment of a significant Norwegian satellite operator, which, along with a growing Norwegian space industry, can strengthen Norway as an area nation,” said Jan Christian Vestre, Norway’s Minister of Trade and Industry.
“At the identical time, the acquisition ensures that Norway, in a time of accelerating geopolitical unrest, maintains control over satellites crucial for critical societal functions and strategically essential for the country.”
The Norwegian government owns a majority of the shares Telenor trades on Norway’s most important stock exchange.
Telenor Satellite owns and operates three geostationary spacecraft at 1 degree West — Thor 5, Thor 6, and Thor 7 — and likewise leases capability from an Intelsat satellite at the identical orbital slot, giving it telecom and broadcast coverage across Europe, the Middle East, and North Africa.
Space Norway was arrange a couple of decade ago to acquire spacecraft for the Arctic Satellite Broadband Mission (ASBM), a $450 million two-satellite system in highly elliptical orbits to offer connectivity at latitudes beyond where geostationary satellites can reach.
Northrop Grumman of the USA is providing the satellites for a SpaceX Falcon 9 launch slated this yr from Vandenberg Space Force Base, California.
Space Norway also operates 4 maritime surveillance spacecraft for the Norwegian Coastal Administration, and has plans for 2 more small radar satellites to watch Norwegian waters.
The corporate also manages undersea fiber-optic cables connecting mainland Norway to a Svalbard ground station site operated by KSAT, a polar satellite infrastructure provider Space Norway half owns.
Dag Stølan, Space Norway’s CEO, said acquiring Telenor Satellite’s assets would bolster Norway’s global space presence and pave the way in which for brand new projects.
“The means of acquiring a brand new satellite within the Thor series will start without delay,” said Stølan, who took the corporate’s helm in June.
Although the deal would see Telenor divest space operations to give attention to its core terrestrial communications business, the telco has signed a letter of intent with Space Norway that outlines its continued cooperation on latest satellite services.
Space Norway and Telenor Satellite generated about 1.8 billion Norwegian krone ($165 million) in combined revenues for 2022, and had an order backlog of around 13 billion Norwegian krone.
The combined group would employ around 170 employees.