Telenor Sells Its Telecom Operations in Myanmar

Telenor Group has entered into an agreement to sell 100 percent of its mobile operations in Myanmar to M1 Group for a total consideration of 105 million USD (approximately 900 million NOK), of which 55 million USD (approximately 470 million NOK) is a deferred payment over five years. The transaction corresponds to an implied enterprise value of approximately 600 million USD (approximately 5.2 billion NOK). M1 Group will acquire all the shares in Telenor Myanmar and continue the current operation. ALSO READ Wateen and Cisco’s SD WAN is Digitizing Businesses across Pakistan On 4th May, Telenor Group announced an impairment of Telenor Myanmar.  Telenor underlined at the time that the operations in Myanmar will continue, and that the future presence would depend on the developments in the country and the ability to contribute positively to the people of Myanmar. Further deterioration of the situation and recent developments in Myanmar form the basis for the decision to divest the company. In the present situation, it has not been possible for Telenor to conduct an ordinary sales process. ALSO READ Latest PIBs Auction Narrowly Misses Out on Targeted Financing Since operations started in 2014, Telenor’s funding to Myanmar has been around 5.3 billion NOK. After turning cash flow positive in 2017, Telenor Myanmar has distributed approximately 3.2 billion NOK in dividends. With effect from the second quarter of 2021, Telenor Myanmar will be treated as an asset held for sale and discontinued operations. The gain/loss calculation arising from the transaction will be impacted, inter alia, by the accumulated translation differences related to the Myanmar operation, and will be finally determined at closing. The transaction is subject to regulatory approvals in Myanmar.