Telenor is to sell its 49.5% stake in Esat Digifone to British Telecommunications for 1.3 billion euros, giving it a profit of 1.2 billion euros, or IR£1bn.
The Norwegian state telecoms firm said the transaction, exercising an option agreed last year, was expected to be completed in March.
Telenor acquired a 40% stake in Digifone in 1996. This stake was subsequently increased to 49.5%. BT will now own the entire Esat Digifone company.
'In January last year, following BT's take over 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,' the company said in a statement.
