TeliaSonera exits Nepal Satellite, focuses on Ncell in Nepal
- 2013-09-11 07:00 UTC
TeliaSonera has reached an agreement to sell back its indirect ownership in Nepal Satellite, a regional operator in Nepal, to Zhodar Investment. Over the past year, uncertainty regarding the regulatory and legal environment for consolidation and granting of licenses in Nepal has increased.Pursuing an acquisition of Nepal Satellite is therefore not considered possible for regulatory reasons.
The agreement enables TeliaSonera to concentrate on Ncell, which reduces the business risk and complexity of TeliaSonera’s total involvement in Nepal.
In connection with the sale, TeliaSonera will report a loss of circa SEK 0.4 billion. Nepal Satellite’s operations are so limited that the consolidated financial statements will not be affected when the company ceases to be consolidated.
TeliaSonera’s effective ownership of 57 percent in Nepal Satellite is the result of acquisitions made in 2011 and 2012. The purpose of the acquisition was to strengthen TeliaSonera’s operations in Nepal with a complementary brand.
Norton Rose Fulbright, K&L Gates, and UBS have been the principal advisors in the transaction which is expected to close within a month.
TeliaSonera is the majority owner of mobile operator Ncell which is Nepal's largest mobile operator, with around 10 million subscriptions. Sales in Ncell were SEK 2.7 billion in 2012.
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of TeliaSonera.
TeliaSonera provides network access and telecommunication services in the Nordic and Baltic countries, the emerging markets of Eurasia, including Russia and Turkey, and in Spain. TeliaSonera helps people and companies communicate in an easy, efficient and environmentally friendly way. Our ambition is to be number one or two in all our markets, providing the best customer experience, high quality networks and cost efficient operations. TeliaSonera is also the leading European wholesale provider with a wholly-owned international carrier network. In 2012, net sales amounted to SEK 105 billion, EBITDA to SEK 36.1 billion and earnings per share to SEK 4.59. The TeliaSonera share is listed on NASDAQ OMX Stockholm and NASDAQ OMX Helsinki. Read more at www.teliasonera.com.