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OSLO, July 1 (Reuters) - Norwegian telecoms operator Telenor (TEL.OL) is exploring the sale of its Myanmar unit, industry publication TMT Finance reported on Thursday, and has hired Citi to sell the business, with non-binding bids due in the coming weeks.
A Telenor spokesperson said the company does not "comment on market rumours". Citi declined to comment.
Telenor wrote off the value of its Myanmar operation in May in light of the deteriorating security and human rights situation in the country, where its mobile business remains severely restricted following the Feb. 1 military coup. read more
Some Chinese buyers are also being invited to bid, TMT Finance said, which would likely not be subject to international sanctions faced by other international telecom companies.
TMT said the other foreign operator in Myanmar, Qatar's Ooredoo (ORDS.QA), had shown interest in buying its market peer and was looking to find a financial adviser for the forthcoming process.
Ooredoo was not immediately available for comment.
A source with direct knowledge of the matter, speaking on condition of anonymity, confirmed to Reuters that the detail of the TMT Finance report was accurate.
Telenor has around 18 million customers in Myanmar, serving a third of its 54 million population. It is one of the biggest foreign investors in Myanmar, which it entered in 2014.
Myanmar accounted for 7% of Telenor's earnings last year.
Reporting by Gwladys Fouche and Victoria Klesty in Oslo, Fanny Potkin in Singapore and Saeed Azhar in Dubai; Editing by Jan Harvey.
www.reuters.com
The Norwegian parent company of telecoms operator Telenor Myanmar said Friday it was continuing to weigh its options in the country, a day after an industry publication reported the firm was planning to sell its local unit and had hired global banking giant Citi to handle the divestment.
Telenor launched its operation in Myanmar in 2014. As of 2020, it had 16.243 million subscribers and was one of the biggest foreign investors in the country.
In a statement issued Friday, the Norwegian company said, “Telenor Group is in the process of evaluating various options with regards to its presence in [Myanmar]. The evaluations are ongoing, and Telenor Group will not make any further comments.”
Industry publication TMT Finance reported on Thursday that Chinese buyers had been invited to bid on Telenor Myanmar, and that Ooredoo of Qatar, which already operates in Myanmar, had also expressed interest.
Telenor has been dealt a serious blow by the Feb. 1 coup, in which the Myanmar military seized power from the country’s elected government and jailed its leaders. Since then it has been forced to deal with internet restrictions imposed by the junta, as well as the human rights implications of continuing to do business in the country. In May, Telenor Group was forced to write off the value of its operations in Myanmar, recording a US$780-million impairment charge.
In yesterday’s statement, Telenor did not respond directly to the reports of its planned sale of the Myanmar unit, and simply repeated its reasons for May’s write-off, which it said were “due to the worsening economic and business environment outlook and a deteriorating security and human rights situation, with limited prospects of improvement.”
It reiterated that its “future presence would depend on the developments in the country and the ability to contribute positively to the people of Myanmar.”
www.irrawaddy.com
A Telenor spokesperson said the company does not "comment on market rumours". Citi declined to comment.
Telenor wrote off the value of its Myanmar operation in May in light of the deteriorating security and human rights situation in the country, where its mobile business remains severely restricted following the Feb. 1 military coup. read more
Some Chinese buyers are also being invited to bid, TMT Finance said, which would likely not be subject to international sanctions faced by other international telecom companies.
TMT said the other foreign operator in Myanmar, Qatar's Ooredoo (ORDS.QA), had shown interest in buying its market peer and was looking to find a financial adviser for the forthcoming process.
Ooredoo was not immediately available for comment.
A source with direct knowledge of the matter, speaking on condition of anonymity, confirmed to Reuters that the detail of the TMT Finance report was accurate.
Telenor has around 18 million customers in Myanmar, serving a third of its 54 million population. It is one of the biggest foreign investors in Myanmar, which it entered in 2014.
Myanmar accounted for 7% of Telenor's earnings last year.
Reporting by Gwladys Fouche and Victoria Klesty in Oslo, Fanny Potkin in Singapore and Saeed Azhar in Dubai; Editing by Jan Harvey.
Norway's Telenor eyeing sale of Myanmar unit - report
Norwegian telecoms operator Telenor (TEL.OL) is exploring the sale of its Myanmar unit, industry publication TMT Finance reported on Thursday, and has hired Citi to sell the business, with non-binding bids due in the coming weeks.
The Norwegian parent company of telecoms operator Telenor Myanmar said Friday it was continuing to weigh its options in the country, a day after an industry publication reported the firm was planning to sell its local unit and had hired global banking giant Citi to handle the divestment.
Telenor launched its operation in Myanmar in 2014. As of 2020, it had 16.243 million subscribers and was one of the biggest foreign investors in the country.
In a statement issued Friday, the Norwegian company said, “Telenor Group is in the process of evaluating various options with regards to its presence in [Myanmar]. The evaluations are ongoing, and Telenor Group will not make any further comments.”
Industry publication TMT Finance reported on Thursday that Chinese buyers had been invited to bid on Telenor Myanmar, and that Ooredoo of Qatar, which already operates in Myanmar, had also expressed interest.
Telenor has been dealt a serious blow by the Feb. 1 coup, in which the Myanmar military seized power from the country’s elected government and jailed its leaders. Since then it has been forced to deal with internet restrictions imposed by the junta, as well as the human rights implications of continuing to do business in the country. In May, Telenor Group was forced to write off the value of its operations in Myanmar, recording a US$780-million impairment charge.
In yesterday’s statement, Telenor did not respond directly to the reports of its planned sale of the Myanmar unit, and simply repeated its reasons for May’s write-off, which it said were “due to the worsening economic and business environment outlook and a deteriorating security and human rights situation, with limited prospects of improvement.”
It reiterated that its “future presence would depend on the developments in the country and the ability to contribute positively to the people of Myanmar.”
Parent of Telenor Myanmar ‘Weighing Options’ Amid Reports It Plans to Sell
Norway’s Telenor Group said only that it was continuing to consider its options after reports emerged it is looking to sell Telenor Myanmar in the wake of the coup.
www.irrawaddy.com
