Telenor to Acquire Bahnhof Stake for $575M

Acquisition Overview

Telenor announced on Wednesday that it will acquire a controlling stake in Stockholm‑listed broadband provider Bahnhof for a total consideration of 6.1 billion Swedish krona, equivalent to approximately US$575 million. The transaction values Bahnhof at roughly 17 times its enterprise value to last twelve months EBITDA on a standalone basis.

Market Positioning

Post‑acquisition, Telenor will become the second‑largest broadband operator in Sweden. Bahnhof contributes more than 500,000 consumer customers and about 15,000 enterprise customers to Telenor’s existing portfolio.

Financial Impact and Synergies

Telenor projects that synergies from the combination will lift annual EBITDA by an average of 700 million kronor each year over the first four years after completion. Integration expenses are expected to total around 100 million kronor per year during the same period, primarily driven by operational costs. The company also indicated that earnings per share are expected to increase starting in 2029 as a result of the transaction.

Stock Market Reaction

Following the announcement, Telenor’s share price moved down 0.48%, while Bahnhof’s shares rose 16.31%.