Telia Boosts Stake in Finnish Fiber JV
Swedish telecom operator Telia is increasing its ownership in Finnish fiber JV Valokuitunen from 40% to 49%. The move reflects a broader European trend of telcos and infrastructure funds using staged buy-ins and joint ventures to build scale in last-mile fiber assets.
The transaction implies a total valuation for Valokuitunen of approximately €333 million, based on the €30 million cash consideration Telia paid for the additional 9% stake. This deal sees infrastructure fund CapMan Infra exit its 60% position, with Brookfield Asset Management acquiring the 51% majority stake. The sale comes after reports in mid-2025 suggested CapMan was considering a sale that could have valued the entire venture at around €500 million. This deal deepens an existing partnership between Telia and Brookfield, who have collaborated on Telia's tower assets in Sweden, Finland, and Norway since 2021. The structure allows Telia to maintain significant influence and act as a key service provider on the network while Brookfield, via its Infrastructure Structured Solutions fund, brings its expertise in managing long-term infrastructure assets. The joint venture, Valokuitunen, was formed in 2020 with an initial network reaching just 20,000 households. It has since grown to become Finland's market leader, passing more than 400,000 homes. The company's growth was supported by a significant €400 million refinancing package secured in July 2023 from a consortium of banks including KfW and SEB. This transaction is emblematic of a wider European trend where telecom operators are separating their infrastructure assets to unlock value and attract specialist investors. Similar recent deals include Telefónica's partnership with Allianz to deploy fiber in Germany and Vodafone's Vantage Towers joint venture with KKR and GIP. These structures allow telcos to share the heavy capital expenditure required for fiber rollouts. The Finnish fiber market is a key area of growth, having lagged behind its Nordic neighbors. In 2024, fiber availability in Finland was 68%, compared to 93% in Sweden and 74% in Norway, indicating significant runway for network expansion and investment returns. The country has seen some of the fastest growth in fiber availability in the region in recent years.
