Adjusted provision for settlement of Uzbeki investigations
Based on recent developments, Telia Company adjusts its estimate of the most likely outcome of the ongoing investigations into the company’s market entry and operations in Uzbekistan to USD 1 billion from USD 1.45 billion. “No final resolution has yet been reached and therefore, there can be no assurance that the final amount will not differ from the provision,” says Jonas Bengtsson, Group General Counsel Telia Company.
In September 2016 American and Dutch authorities proposed a USD 1.45 billion settlement amount for the ongoing investigations into Telia Company’s transactions in Uzbekistan in 2007.
Jonas Bengtsson, Group General Counsel, describes Telia Company’s discussions with the authorities about the settlement, as constructive.
“We have made progress and as a result of our discussions and in light of recent developments to date, we have adjusted our estimate of the most likely outcome and we are therefore changing our provision to reflect the best estimate. The new provision amounts to USD 1 billion.”
The adjustment does not mean that a final resolution has been reached, says Bengtsson.
“Therefore there can be no assurance that the final amount will not differ from the provision. The discussions are still ongoing and we can therefore not comment any further at this point in time.”
Why do we need to disclose an adjusted provision now even though no final settlement has been reached?
“Telia Company is a listed company and thus we are obligated to disclose any information that might have a significant impact on the company. We have also repeatedly said that as soon as we have new information we will disclose it.”