By Anthony O. Goriainoff

 

Norwegian telecom provider Telenor ASA said late Tuesday that it will sell its headquarters building in Norway to NPRO Holding AS, a wholly owned subsidiary of Norwegian Property ASA, and that it will lease back parts of the buildings for 25 years.

The company said that the gross property value in the transaction was 5.45 billion Norwegian kroner ($583.9 million), and that the net purchase price will be approximately NOK5 billion, which will be received on completion.

The company said the divestment was part of its simplification program, and that it will be recognized in its financial statements upon completion.

"In accordance with IFRS' rules on sale-lease-back, Telenor's accounting gain will be approximately NOK1.3 billion," it said.

 

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

 

(END) Dow Jones Newswires

October 20, 2020 12:44 ET (16:44 GMT)

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