Telenor Group has entered into an agreement to sell 100 percent of its mobile operations inMyanmar toM1 Group for a total consideration of105 million USD (approximately900 million NOK ), of which55 million USD (approximately470 million NOK ) is a deferred payment over five years. The transaction corresponds to an implied enterprise value of approximately600 million USD (approximately5.2 billion NOK ).M1 Group will acquire all the shares in Telenor Myanmar and continue the current operation. On 4 May,Telenor Group announced an impairment of Telenor Myanmar.Telenor underlined at the time that the operations inMyanmar continued, and that the future presence would depend on the developments in the country and the ability to contribute positively to the people ofMyanmar . Further deterioration of the situation and recent developments inMyanmar form the basis for the decision to divest the company. In the present situation it has not been possible forTelenor to conduct an ordinary sales process. "The situation inMyanmar has over the past months become increasingly challenging forTelenor for people security, regulatory and compliance reasons. We have evaluated all options and believe a sale of the company is the best possible solution in this situation. The agreement to sell toM1 Group will ensure continued operations.Telenor enteredMyanmar because we believed that access to affordable mobile services would support the country's development and growth. I wish to thank all employees and partners who have taken significant efforts to build a company that has impacted the people ofMyanmar and has provided state of the art telco services duringTelenor's years in the country", saysSigve Brekke President and CEO ofTelenor Group . Since operations started in 2014,Telenor's funding toMyanmar has been around5.3 billion NOK . After turning cashflow positive in 2017, Telenor Myanmar has distributed approximately3.2 billion NOK in dividend. With effect from second quarter of 2021, Telenor Myanmar will be treated as an asset held for sale and discontinued operations. The gain/loss calculation arising from the transaction will be impacted, inter alia, by the accumulated translation differences related to theMyanmar operation and will be finally determined at closing. The transaction is subject to regulatory approvals inMyanmar . Investor Relations: Øystein Myrvold, mobile: +47 992 30 460, oystein.myrvold@telenor.comHåkon Hatlevik , mobile: +47 901 46 070, hakon.hatlevik@telenor.comKristine Devold , mobile: +47 900 50 780, kristine.devold@telenor.com Media contact: Tormod Sandstø, mobile: +47 90943215, tormod.sandsto@telenor.com
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