Telenor has reached an agreement to purchase a controlling stake in Swedish internet service provider Bahnhof, valuing the company at 6.1 billion Swedish crowns on an enterprise value basis, equivalent to $629.7 million. The Norwegian operator will acquire shares directly from Bahnhof’s founders as well as from another significant investor.
Under the terms announced Wednesday, Telenor will pay 60 Swedish crowns per share to buy holdings from Bahnhof founders Jon Karlung and Andreas Norman. The founders together own 50.8% of the outstanding shares and control 86% of the voting rights through their combined direct and indirect stakes.
Separately, Telenor will purchase a 6.7% stake from Oresund Investment at 62 Swedish crowns per share. The combined transactions give Telenor a controlling position in Bahnhof once the purchases are completed.
The companies estimate the acquisition will contribute roughly 0.7 billion Swedish crowns to annual earnings before interest, taxes, depreciation and amortization (EBITDA) during the first four years under Telenor’s ownership. That projection takes into account recurring integration costs of about 0.1 billion Swedish crowns per year over the same period.
If completed, the purchase will elevate Telenor to the position of Sweden’s second-largest fixed broadband provider. Telenor’s share of consumer broadband subscribers in Sweden is projected to increase to approximately 27% from about 15% prior to the deal.
The agreement specifies that Bahnhof will continue to operate under its existing brand after the transaction.
The acquisition remains subject to regulatory approvals. Following closing, Telenor would be obliged to launch a mandatory cash offer for all remaining Bahnhof shareholders.
Context and next steps
The transaction centers on direct share purchases from major shareholders and does not involve any immediate changes to Bahnhof’s branding. Formal clearance from competition or other regulatory authorities is required before ownership formally transfers. Should those approvals be granted and the purchases conclude, Telenor must make a cash offer to acquire any remaining shares of Bahnhof.
The companies’ published financial impact estimate explicitly factors in both the uplift to EBITDA and the expected integration costs, providing a numeric view of near-term earnings implications during the first four years of ownership.