TV2, Norway’s leading commercial operation, and so far the only private station with a national terrestrial licence, is about too part with its 16 per cent ownership of Canal Digital Norway, an investment TV2 made only some two years ago. The buyer of the TV2 shares has made a request to stay anonymous until all legal documents are finalised and signed, which is expected to happen within the next few days. Norwegian media circles believe the buyer to be “a well-known local media player”. TV2’s exclusive distribution agreement with Canal Digital remains intact.

“Our investment in Canal Digital Norway was just a rather minor one, and we have found it the right time now to harvest from this investment,” commented TV2 information chief Geir Mikalsen.

In the station’s own books the investment in Canal Digital Norway has only been entered as NKr50,000. It is expected that the price the new owner of the shares is about to pay be well in excess of NKr100 million.

Canal Digital was formed in 1997, after Canal+ acquired NetHold and its two FilmNet premium pay services. So far this deal whas been quite costly for its owners: despite an impressive increase in turnover, from NKr418 to 985 million the operation last year ended with a loss of NKr206 million. The accumulated losses since 1997 are now NKr614 million, but senior executives in the organisation claim that the projected aim to break even in 2002, or at its latest in 2003, will be achieved.

At present Canal Digital has some 280,000 digital customers in the Nordic countries. The aim is to reach half a million bythe end of this year. With its analogue customers included Canal Digital has a total of 800,000 Nordic customers.