Telenor sells Myanmar operations to M1 Group for $105m

OSLO: 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 to divest 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.

Telenor: marginal gains

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