Telenor Quits Myanmar, Sells Telecoms Business for $105M To Lebanese Group

Norwegian telecoms firm Telenor has sold its Myanmar business, blaming the difficulties of operating under the military junta and dealing a blow to activists who say they relied on the only Western operator for communications, Victoria Klesty reported for Reuters late.

Telenor, one of the biggest foreign investors in Myanmar, sold its Myanmar operations to Lebanese investment firm M1 Group for $105 million, announcing its retreat from a country that slid into chaos after a military coup in February.

It was one of the few Western companies to bet on the South East Asian country after it emerged from military dictatorship a decade ago. Myanmar accounted for 7% of Telenor's earnings last year.

"There are three reasons why we think a sale is necessary: it is the safety of our employees, but also the regulatory conditions and also that there is good compliance," Telenor CEO Sigve Brekke told Reuters.

"When we wrote off the business in May, we felt we could still operate in the country, although it was challenging. But after that, it has worsened."

In May, Telenor booked a loss of 6.5 billion crowns ($738 million) after seeing its mobile business in Myanmar severely restricted following the Feb. 1 military coup.

On March 15, the junta ordered a nationwide shutdown of mobile data, making it harder for pro-democracy activists to organize protests and circulate messages supporting the overthrown civilian government.

Violence since the Feb. 1 coup has driven more than 230,000 people from their homes. More than 880 people have been killed by security forces and 5,200 are in detention, the United Nations says.

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