BellSouth Corporation announced today that is has agreed to sell its interest in the Danish wireless provider, Sonofon, for 3.68 billion Danish Kroner ($600 million) to Norway’s Telenor ASA.
BellSouth will receive 3.05 billion Danish Kroner for its 46.5% equity stake and 630 million Danish Kroner in repayment of its shareholder loan and accrued interest.
Telenor, the incumbent local exchange carrier in Norway, currently owns 53.5 percent of Sonofon and shares joint control of the company with BellSouth.
Closing on the transaction is expected by the first half of 2004, pending regulatory approval by the Danish Telecom Agency and the appropriate competition European authorities.
Upon closing, BellSouth expects to record an after-tax gain of approximately $285 million in the first half of 2004.