TeliaSonera has sold its Danish cable subsidiary, Stofa, to a private equity company for 1.1 billion Danish kroner (€148.9 million).
Per-Arne Blomquist, TeliaSonera’s CFO, said the company had determined that Stofa's “operations are not in line with our core strategy in Denmark.”
He said TeliaSonera will recognize a capital gain of over 500 million kroner on its investment in the cableco, which it acquired in 1995.
The buyer is Ratos, a Danish listed company which concentrates its equity activities in the Nordic area.
Stofa, which offers cable TV, broadband and phone services, has been acting as an independent company to TeliaSonera.
It has around 345,000 subscribers and 500 employees, and owns a network which includes a 2,100km fiber backbone.
Stofa took in around 1 billion kroner in revenue in 2009, while its ebitda was 166 million kroner.
The agreement is subject to the approval of competition regulators and of the TeliaSonera board.