Norway's Telenor buys 57.5% stake worth $629 million in Swedish broadband provider

COPENHAGEN, July 8 (Reuters) - Norwegian telecom operator Telenor said on Wednesday it has agreed to buy a controlling stake in Swedish broadband provider Bahnhof in a deal valuing the company at 6.1 billion Swedish crowns ($629.7 million) on an enterprise value basis.

• Telenor said in a statement it has agreed to acquire the shares of Bahnhof's founders, Jon Karlung and Andreas Norman, for 60 Swedish crowns per share.

• The founders directly and indirectly hold 50.8% of the shares and 86% of the votes, respectively.

• The company has also agreed to acquire a 6.7% stake held by Oresund Investment, the second-largest shareholder, for 62 Swedish crowns per share.

• The deal is expected to increase annual earnings before interest, taxes, depreciation and amortisation (EBITDA) progressively during the first four years of ownership, averaging around 0.7 billion Swedish crowns per year in the period, before annual integration costs of around 0.1 billion Swedish crowns over the same period.

• The acquisition will make Telenor Sweden's second-largest fixed broadband provider, it added.

• Completion of the deal, which is still subject to regulatory approvals, will trigger an obligation for Telenor to make a mandatory cash offer to all shareholders of Bahnhof.

• The acquisition will increase Telenor's consumer subscriber market share to around 27% from around 15%, it added.

• Bahnhof will continue to operate under its own brand after the acquisition.

($1 = 9.6869 Swedish crowns)

(Reporting by Louise Rasmussen; Editing by Jacqueline Wong and Janane Venkatraman)