Monday, January 2, 2017

The possible sale of Telenor India – Aftenposten

The indian mobile operator Bharti Airtel is considering to buy Telenor’s India operations for $ 350 million, write ONE Now.

With today’s exchange rate equals the amount a little in excess of three billion Norwegian kroner, writes Dagens Næringsliv.

Half of the commitments

Sources said to the news feed that Bharti is likely to take over half of Telenor’s India-liabilities and that Telenor carries the remaining half.

It means that Telenor must cover half of its own obligations in connection with a potential sale. The agreement is expected according to the Economic Times to be completed by the end of January.

Here is A Now Twittermelding about the possible sale:

Will not comment on the

Telenor says to Aftenposten that the company of the principle of never commenting on rumors or speculation in the market.

Telenor has wanted to sell out of India, and chief executive officer Sigve Brekke said last fall that the company should find a solution by the end of 2016. Just before christmas, delayed he the deadline to 2017.

In the autumn there should have been negotiations between Telenor and the competitor Idea Cellularm.

India-the betting

Telenor’s India initiatives has been a headache for the company, after that they went into market in 2008. The Norwegian telegiganten bought into the licenses for far more than what the indian company Unitech had paid.

the Company’s licenses were revoked by the Supreme court in India in 2012 after the ruling on corruption. Still bought Telenor in 2015, 100 percent of the shares in the company, which changed its name to Telenor India.

Trouble in Telenor-the top

Just before christmas it became clear that Telenor’s chairman of the board Gunn Wærsted would get rid of Sigve Brekke.

the Background should be that she believes the issues from the break off the past as the Asia head of Telenor are serious irregularities.

the Noise in the telegiganten ended with both Wærsted and Break were sitting in the company. 2. February, the company must have capital markets day and put forward the company’s strategy.

Telenoraksjen up

Telenoraksjen got a boost after Twittermeldingen in the day and is now up in the 131,90 million, up 2.25 per cent.

Telenor owes the indian state 2.5 billion in license fees and has liabilities of around nok 2.2 billion to financial institutions.

Have lost 25 billion. money

Telenor shall, according to DN have lost 10.5 billion dollars on operations, India since its inception in 2009. The company has invested more than 14 billion. In Telenor’s financial statements, this investment according to the DN valued at only 300 million.

That means a total loss so far at nearly 25 billion in India. Telenor has warned that it can get to sell out of India, something that will happen with significant loss.

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