Telenor completes Myanmar exit

28 Mar 2022

Norway’s Telenor Group has completed the sale of its Myanmar division to Lebanese investment firm M1 Group. In a statement, Telenor confirmed that it had received the first payment of USD50 million, whilst the remaining USD55 million would be paid in equal instalments over the next five years. The company added that although the closing of the transaction would have only a minor impact on the equity of Telenor Group, the reclassification of accumulated losses would negatively impact its income statement by around NOK800 million (USD92.8 million), whilst the derecognising of the cash balance in Telenor Myanmar and the proceeds from the sale would result in a net negative cash flow impact of roughly NOK1.5 billion. Further, the deferred payments would not be recognised in the accounts due to the ‘uncertain situation in Myanmar’. The company will continue to operate under the Telenor Myanmar name for four months and has a transition service agreement with Telenor for six months.

As previously reported by TeleGeography’s CommsUpdate, Telenor was belatedly granted conditional approval for the sale of its Telenor Myanmar unit earlier this month. The junta greenlit the transaction with the requirement that M1 have a local partner in Telenor after the transaction between M1 and Telenor has closed. To that end, M1 partnered with local conglomerate Shwe Bain Phyu Group (SBP), which has acquired 49% of Investcom, the Singapore-based company set up by M1 for the purchase of Telenor Myanmar. With the closure of that transaction, M1 will sell an additional 31% of Investcom shares to SBP.

Myanmar, Atom Myanmar (formerly Telenor), M1 Group (Lebanon), Telenor Group