BANGKOK (AP) — The Norwegian telecoms company Telenor, one of the biggest carriers in Myanmar, said Thursday it has agreed to sell its entire operations in the country to the M1 Group, a Lebanese-based investment firm, for $105 million.
Telenor earlier announced it was writing off the value of the business after a military takeover ignited a public backlash and the authorities imposed limits on mobile and internet access.
“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.
It said Beirut-based M1 Group would take over its entire Myanmar business, acquiring 100% of the company, its spectrum, licenses, contracts and operations, employees and customers. The deal is subject to regulatory approvals in Myanmar.
The implied value of the entire business is about $600 million, it said.
Telenor earlier had said its continued presence in the country would depend on whether it could “contribute positively to the people of Myanmar” under the current military leadership, which ousted the elected government of Aung San Suu Kyi.
Many foreign companies with investments in Myanmar are in the awkward situation of balancing their own interests and those of their employees against pressure both inside and outside the country to comply with sanctions against its military leaders.
Some companies have suspended construction projects or halted payments of dividends in response to such calls.
Telenor said that the situation in Myanmar was growing increasingly challenging due to 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,” Sigve Brekke, president and CEO of Telenor Group, said in a statement.
M1 Group is a diversified company with interests in investments, real estate, fashion, financial technology and telecom services. Its MTN network provides services in Africa and the Middle East.
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7 Stocks to Buy Now and Avoid a Summer Swoon
Summer is generally a quiet time in the markets. Institutional investors, generally speaking, take some time away. In fact, that’s where the idiom “Sell in May and Go Away” comes from.
But quiet doesn’t mean uneventful. The world still moves along even in the lazy months of summer. And at the moment, there are two conflicting views driving the market.
One is the fear that everything’s a bubble that is just about to burst. We don’t recommend you get out of stocks, but let’s face it, things are more than just a little frothy.
But there’s another view summarized by the acronym, YOLO (as in You Only Live Once). And these investors are committed to keeping the markets going higher. Even if it means going “all in” (whatever that means to them) on risky asset classes like NFTs or Dogecoin.
We sincerely hope you take time to recharge (whatever that means to you) this summer. Whatever your personal beliefs, the reopening of our economy is a moment that deserves to be celebrated by all of us. But before you do, we recommend that you take a peek at these seven stocks that you can consider adding to your portfolio before you check out for the summer. These are likely to get as hot as a firecracker on the Fourth of July and should have you smiling when the summer ends.
View the “7 Stocks to Buy Now and Avoid a Summer Swoon”.