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OSLO — Telenor will obtain funds for the sale of its Myanmar operations over the following 5 years, the Norwegian telecoms firm stated on Friday because it introduced the completion of the transaction.
Telenor in Could 2021 wrote down the worth of its Myanmar enterprise by 6.5 billion crowns ($751 million) and later stated it could be bought for $105 million to Lebanese funding agency M1 and native agency Shwe Byain Phyu.
“Telenor has acquired $50 million at closing. The remaining $55 million shall be acquired in equal installments over the approaching 5 years,” it stated.
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“As a result of unsure state of affairs in Myanmar, the deferred cost is not going to be acknowledged within the accounts at closing.”
The sale, prompted by final yr’s navy coup within the Southeast Asian nation, has been criticized by some Myanmar civil rights teams and Norwegian politicians who concern it places the info of 18 million individuals inside the junta’s attain.
Telenor, which final week acquired approval for the sale from Myanmar’s rulers, says the agency needed to depart the nation to stick to its personal values on human rights and accountable enterprise, and since native legal guidelines battle with European legal guidelines.
Telenor will e-book an accrued lack of round 800 million crowns in its first-quarter accounts stemming from a reclassification of things it had beforehand accounted for.
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It is going to additionally see a unfavourable money circulation influence of 1.5 billion crowns ensuing from the “derecognising of the money steadiness in Telenor Myanmar and the proceeds acquired at closing,” the corporate stated.
Reuters reported in February that Shwe Byain Phyu, whose chairman has a historical past of enterprise ties to the navy, will personal 80% of the Myanmar operation whereas M1 will personal the remaining.
Shwe Byain Phyu has denied ties to the Myanmar military and beforehand stated it was “chosen by Telenor … as a result of it was essentially the most unrelated to the navy.”
M1, Shwe Byain Phyu and Myanmar’s navy rulers didn’t instantly reply to emailed requests for remark.
($1 = 8.6495 Norwegian crowns) (Reporting by Terje Solsvik; modifying by Gwladys Fouche and Jason Neely)
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