Norwegian telecoms firm Telenor said today it would sell its 49.5 per cent stake in Esat Digifone to BT for euro 1.3 billion.
It said the transaction - exercising an option agreed in January last year - was expected to be completed in March 2001 and would give Telenor a pre-tax profit of about euro 1.2 billion.
"The transaction entails a total cash consideration to Telenor of about 10.8 Norwegian billion crowns [euro 1.3 billion] and is the result of an agreement that Telenor and BT entered into in January 2000," Telenor said.
Telenor acquired a 40 per cent stake in Esat Digifone in 1996. This stake was subsequently increased to 49.5 per cent.
In January last year following BT's takeover of the Esat Telecom group Telenor entered into an options contract with BT which gave the company the right to sell its equity holdings to BT for a pre-determined price.