On Thursday, Telenor- The Norwegian telecoms company and one of the biggest importers in Myanmar, announces that they had sold their complete operation to a Lebanese-based investment company, M1 Group for $105 million.
According to their statement, the reason behind this step was the military acquisition, which ignited people criticism and restrictions by the authorities 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 the statement.
Sigve Brekke- CEO of Telenor said, “There are 3 reasons we think a sale is necessary: it is the safety of our employees, but also regulatory conditions & also that there is a good compliance,”
“When we wrote off the business in May, we felt we could still operate in country, although it was challenging. But after that, it has worsened.” He added.
As per the news, Beirut-based M1 Group would take control Telenor’s entire Myanmar business, getting 100% of the company, its scale, licenses, agreements & operations, employees & customers. The deal is subject matter to governing endorsements in Myanmar.
Various foreign companies with investments in Myanmar are in the uncomfortable situation of balancing their personal interests and those of their employees against stress both inside & outside the country to abide by the penalties imposed against its military leaders.
Furthermore, some companies have halted construction projects or stopped the payments of bonuses as a reply to such calls.
