Telenor sells Myanmar operations to M1 Group for $105 million

FILE PHOTO: Telenor flag flutters next to the company’s headquarters in Fornebu, Norway, June 1, 2017. REUTERS/Ints Kalnins/File Photo

OSLO (Reuters) – Norwegian telecoms operator Telenor has sold its Myanmar operations to Lebanese investment firm M1 Group for $105 million, Telenor said in on Thursday.

“Further deterioration of the situation and recent developments in Myanmar form the basis for the decision todivest the company,” Telenor said in a statement.

Telenor wrote off the value of its Myanmar unit in May, booking a loss of 6.5 billion Norwegian crowns ($752 million), after seeing its mobile business severely restricted following the Feb. 1 military coup.

The transaction corresponds to an implied enterprise value of about $600 million, and the sale to M1 group will guarantee continued operations, Telenor Chief Executive Sigve Brekke said.

“The situation in Myanmar has over the past months become increasingly challenging for Telenor for people security, regulatory and compliance reasons,” Brekke said.

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