Telenor Completes Sale of Myanmar Unit

By Dominic Chopping

Norwegian telecommunications provider Telenor ASA said Friday that it has completed the sale of Telenor Myanmar.

Telenor last year agreed to sell its mobile operations in Myanmar to Lebanese investment firm M1 Group for $105 million, after a military coup in the country led to a deteriorating security and human-rights situation and a worsening economic and business-environment outlook.

In line with the sales and purchase agreement, Telenor said Friday that it has received $50 million at closing, with the remaining $55 million to be received in equal installments over the coming five years.

Telenor said closing of the deal will mean the reclassification of accumulated losses related to translation differences that will affect the income statement negatively by around 800 million kroner ($92.2 million).

In addition, de-recognizing the cash balance in Telenor Myanmar and the proceeds received at closing will mean a net negative cash flow impact of around NOK1.5 billion.

The deal will be booked in the first quarter.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

March 25, 2022 04:11 ET (08:11 GMT)

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