Nordic operator TeliaSonera announced it had taken a SEK600 million ($83.1 million) charge related to its operations in Eurasia as part of a total of SEK850 million of non-recurring costs in the third quarter.
The company commissioned an independent external adviser to assess the balance sheet of the group’s Eurasian operations before the summer mainly to value “assets under construction and inventory in all its Eurasian business units”.
The move was part of efforts to focus on improving control of its Eurasian operations, as outlined in the company’s second quarter interim report.
The assessment concluded that there should be SEK600 million of non-recurring costs in Eurasia for the third quarter period. This write-down has no cash impact, according to the company.
The company had previously reported non-recurring items in Eurasia totalling SEK412 million in the second quarter.
In addition to the charge related to Eurasia, TeliaSonera settled obligations of SEK247 million related to lease agreements in Stockholm as a result of its planned move to new premises in Solna in 2016.
Former TeliaSonera CEO Lars Nyberg resigned in February 2013 after an external review criticised TeliaSonera for not being more careful when it bought its mobile licence in Uzbekistan in 2007.
Bribery and money laundering were among the charges investigated following an expose on Sweden’s SVT public broadcaster in May 2013.
Swedish prosecutors subsequently opened an investigation into whether TeliaSonera knew, or should have known, when it bought the licence from intermediary company Takilant – registered in Gibraltar – that the money went to President Islam Karimov’s family.
The Uzbekistan scandal caused huge upheaval at TeliaSonera. Although the operator always maintained that it has not broken any laws in the country, Johan Dennelind – appointed CEO in June 2013 – fired four top executives the following November as part of a management clear-out.
In April, TeliaSonera admitted it may have broken laws in other countries as Dutch, Swedish and US authorities continued their investigation into the operator’s dealings in Uzbekistan.
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