The agreement between Telenor and BT means that, by the end of September, Telenor will take over Telenordia AB. From the same point in time BT's share of activities and assets from the jointly owned company will be transferred to a newly established business enterprise. In order to balance the agreement Telenor will pay to BT a gross cash consideration of ten million pounds.
Through the agreement with BT, Telenor will retain the Telenordia name. The company will principally focus on telephony, data and Internet services for the corporate market, as it already does today. In accordance with an agreement with BT, Telenordia will continue to have the main customer base for Nordicom's products (a Nordic data communications network for the corporate market).This agreement puts Telenor in a better position to coordinate its expansion into Sweden.
«At Telenor, we're happy that we have resolved the Telenordia ownership structure so that we can further develop the company. As the owner of the future Telenordia, Telenor will focus on synergies and possibilities in the Swedish market with a view to developing long-term profitability in the company. Telenordia will also be an important part of our Nordic strategy», says Jon Fredrik Baksaas, Senior Executive Vice President in Telenor.
BT will remain on the Telenordia board until 30 September 2001. Jon Fredrik Baksaas, Senior Executive Vice President, will assume the post of Chairman of the Board, succeeding Morten Karlsen Sørby.