Telenor has entered into a definitive agreement with Apax Partners France for the sale of Telenor Satellite Services (TSS) to funds managed by Apax Partners for a cash consideration of $400 million, according to a Telenor statement.
The company said that since 2002, it had defined TSS as a "non-core business."
Apax Partners intended to pursue the development of the company in Norway and abroad, Telenor said.
TSS offers communication solutions via satellite to land, air and sea.
Telenor said the transaction would not impact the services provided by TSS and business relations with customers would remain unchanged.
'Apax Partners is a very capable owner, and the sale of Telenor Satellite Services is made in accordance with Telenor's strategy to divest business operations that fall outside the scope of our core activities," said Bjarne Aamodt, chairman of TSS and SVP at Telenor.
"We are pleased that Telenor Satellite Services will now have an owner that is well-positioned to continue the development of the company,' Aamodt added.
The transaction is subject to approval from regulatory authorities.
Telenor is expected to post a gain of 1.4 billion kroner ($159.2 million) from the sale.