Telenor finalised the sale of its unit in Myanmar to M1 Group for $105 million and indicated it would book additional losses related to the now divested business in its Q1 financial results.
The operator group has already received $50 million for the business with the remainder to be paid over installments over the next five years.
In its statement, Telenor indicated it would book a financial hit in its Q1 2022 results on the “reclassification of accumulated losses” on the division for items it had previously accounted for.
It added although the initial sum from the sale would be added to its balance sheet in its upcoming results: “Due to the uncertain situation in Myanmar, the deferred payment will not be recognised in the accounts at closing.”
The company is due to report its Q1 results in May.
Telenor announced the proposed sale in July 2021 at a time of an uncertain political situation in the country, though questions on the likelihood of its completion were raised several times in media, as authorities reportedly wanted a local buyer to take charge of the business.
The deal was eventually cleared earlier this month on the condition a Myanmar-based partner was lined up by Lebanon-based M1 Group post closing.Subscribe to our daily newsletter Back