Bharti Airtel to take ownership of Telenor's operations in India
February 22 2017 - 10:16PM
(Fornebu, Norway - 23 February 2017) - Telenor ASA
has on 23 February 2017 entered into a definitive agreement with
Bharti Airtel Limited (Airtel), whereby Airtel will take full
ownership of Telenor India.
Airtel is India's largest wireless operator with
over 269 million subscribers and a revenue market share of over 33
per cent. As the new owner, Airtel will take over Telenor India's
spectrum, licenses and operations, including its employees and
customer base of 44 million. Telenor's operations and services will
continue as normal until the completion of the transaction.
"We believe today's agreement is in the best
interest of our customers, employees and Telenor Group. Finding a
long term solution to our India business has been a priority for
us, and we are pleased with our agreement with Airtel. The decision
to exit India has not been taken lightly. After thorough
consideration, it is our view that the significant investments
needed to secure Telenor India's future business on a standalone
basis would not have given an acceptable level of return," says
Sigve Brekke, Chief Executive Officer of Telenor Group.
Gopal Vittal, Managing Director and CEO (India and
South Asia), Bharti Airtel, says, "The agreement underlines our
commitment to lead India's digital revolution by offering
world-class and affordable telecom services through a robust
spectrum portfolio spread across multiple bands. On completion, the
proposed acquisition will undergo seamless integration, both on the
customer as well as the network side, and further strengthen our
market position considerably in several key circles. The customers
of Telenor India will be able to enjoy India's widest and fastest
voice & data network, and a range of Airtel's world-class
products and services."
The transaction will not trigger any impairment.
As of fourth quarter 2016, the remaining value of tangible and
intangible assets in Telenor India amounted to NOK 0.3
billion.
According to the agreement, Airtel and Telenor
India will merge and Airtel will take over Telenor India as soon as
all necessary approvals are received. As part of the agreement,
Airtel will take over outstanding spectrum payments and other
operational contracts, including tower lease.
The transaction is subject to requisite regulatory
approvals, including approvals from the Department of
Telecommunications in India (DoT) and the Competition Commission of
India. The exposure to claims related to the period Telenor owned
the business, will remain with Telenor.
The transaction is expected to close within 12
months. With effect from first quarter 2017, Telenor India will be
treated as an asset held for sale and discontinued operations in
Telenor Group's financial reporting.
Telenor announced its entry into India in 2008. In
2016, Telenor India's revenues were NOK 6.0 billion and the
operating cash flow was NOK -0.4 billion. Telenor services are
commercially available in six telecom circles in India (Andhra
Pradesh, Bihar & Jharkhand, Gujarat, Maharashtra, UP East and
UP West), and the company also has spectrum in Assam.
About Telenor
Group
Telenor Group is one of the world's major mobile operators, with
reported revenues of NOK 131 billion in 2016. We keep 214 million
mobile subscribers connected in 13 markets across Scandinavia,
Central Eastern Europe, and Asia. Our 36,000 employees are
committed to responsible business conduct and being our customers'
favourite partner in digital life. Connecting the world has been
Telenor's domain for more than 160 years, and we are driven by a
singular vision: to empower societies.
About Bharti
Airtel
Bharti Airtel Limited is a leading global telecommunications
company with operations in 17 countries across Asia and Africa.
Headquartered in New Delhi, India, the company ranks amongst the
top 3 mobile service providers globally in terms of subscribers. In
India, the company's product offerings include 2G, 3G and 4G
wireless services, mobile commerce, fixed line services, high speed
home broadband, DTH, enterprise services including national &
international long distance services to carriers. In the rest of
the geographies, it offers 2G, 3G and 4G wireless services and
mobile commerce. Bharti Airtel had over 368 million customers
across its operations at the end of January 2017. To know more
please visit, www.airtel.com
Contact:
Investor relations:
Helge Øien, mobile +47 913 19 242
Marianne Moe, mobile +47 916 17 631
Communications
Meera Bhatia, mobile: +47 468 44 959
Glenn Mandelid, mobile: +47 926 61 300
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Telenor via Globenewswire
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