Telenor says it is evaluating the future of its Myanmar operations
OSLO (Reuters) – Norwegian telecommunications operator Telenor is considering the future of its operations in Myanmar due to the deteriorating business and security situation in the country, the company said on Friday.
Telenor wrote off the value of its Burmese unit in May, recording a loss of 6.5 billion Norwegian kroner ($ 752 million), after its mobile business remained severely restricted following the military coup of the 1st February.
“Due to the continuing situation, Telenor Group is currently evaluating various options regarding its presence in the country,” the company said in a statement.
Industry publication TMT Finance reported on Thursday that Telenor was considering a sale of the unit in Myanmar and that Citi had been hired to sell the business, with non-binding offers expected in the coming weeks.
A source with direct knowledge of the matter, speaking on condition of anonymity, confirmed to Reuters that the details of TMT Finance’s report were accurate.
Telenor said on May 4 that its presence in Myanmar, which dates back to 2014, would depend on the overall development of the country and the company’s ability to make a positive contribution to the people.
“The assessments are ongoing and Telenor Group will not be commenting further,” the company said on Friday.
In its first quarter earnings report, Telenor said Myanmar executives have imposed network restrictions and a nationwide mobile data shutdown that have halved Telenor’s subscription and traffic revenue in the country.
($ 1 = 8.6430 Norwegian crowns)
(Report by Terje Solsvik, edited by Gwladys FouchÃ© and Emelia Sithole-Matarise)