Gwladys Fuouche

OSLO (Reuters) – Telenor investors are looking for assurances that customers’ data will remain secure after the company sells its Myanmar operations.

Shwe Byain Phyu, a local company in Myanmar, has been given permission by the military to take over most of Telenor’s Southeast Asian operations. This is according to Reuters on Friday.

Human rights organizations have stated that the handover may put 18 million of the people’s data within reach of the junta. There has been a series protests in Myanmar calling for Telenor not to sell the data.

DNB Asset Management was Telenor’s fourth-largest shareholder with a 1.64% share. The company requested that they meet to discuss the imminent exit. Telenor described it as a “considerable dilemma”.

“We plan to discuss the management and treatment of personal data both prior to and following any sale,” said Janicke Scheele, the investor’s head of responsible investments.

Telenor’s eighth largest investor, Storebrand Asset Management with a 1.31% share, stated that the company was asking it to do “human right due diligence” when it leaves the country.

Kamil Zbielski (head of Sustainable Investment at Storebrand) stated that Telenor had to evaluate the possibility that any assets it left could be used for illegal purposes.

According to Zabielski, Telnor’s head for sustainable investments, “Telenor should evaluate whether customer data or the existing infrastructure that could eventually be transferred might be misused by military through any buying counterparty” and then take the appropriate steps to prevent or minimize these risks.

KLP Pension Fund, which holds 0.96% of the stock, stated that it is also reviewing the sale.

Kiran Aziz from KLP, the head of responsible investments told Reuters, “We are currently in dialogue with Telenor, and other stakeholders, on this particular issue in order to obtain a complete picture of the circumstances.”

Telenor responded to investor comments by saying it must comply with Myanmar’s law to ensure the safety of its workers.

Telenor spokeswoman said, “Some have indicated that they understand the need for us to leave the country but have asked us not to continue the operation or delete any data.”

Telenor Myanmar’s operating license can be revoked at any time.

“We cannot ignore local laws while exposing employees to danger. This is absolutely unacceptable,” she said.

Shwe ByainPhyu, the Myanmar military dictatorship did not respond immediately to our requests.

Telenor is Telenor’s largest shareholder. The stake stands at nearly 59%. Telenor did not immediately reply to my request for comment.

Graphic: Telenor subscribers worldwide – https://graphics.reuters.com/MYANMAR-POLITICS/TELENOR/qzjvqbqyrpx/chart.png

Telenor’s withdrawal from Myanmar was not clear because of shareholder pressure.

After the military coup last year, the company tried to exit the country. It told Reuters in September that it had sold its operations to the European Union to escape sanctions.

Late last year, military leaders rejected the plan of selling its local operations — which had once contributed up to 7% to its earnings — to M1 Lebanese Investment Firm M1 for $105 Million.

Three sources who were familiar with the situation told Reuters that they preferred M1 be partnered with Shwe Byain Phyu.

Graphic: Telenor’s earnings in Myanmar – https://graphics.reuters.com/TELENOR-MYANMAR/dgkvlrkgwvb/chart.png

According to Reuters communications, Shwe Byain Phyu will control 80% of the unit in a transfer expected to take place soon.

Telenor spokesperson previously stated to Reuters that there had been no communication with Shwe Byain Phyu. The sale agreement with M1 was also with Telenor, which she said was the “only party” they had selected.”

Shwe Byain Phyu has denied all ties to the Myanmar army and said it was “selected by Telenor … because it was the most unrelated to the military”.

M1 didn’t immediately respond to our requests for comment.

Telenor Myanmar’s two employees, who declined to identify themselves, stated last week to Reuters they were aware that authorities have already asked for call logs from opponents and whereabouts of anyone on the run.

Telenor was able to comply, they said.

Telenor spokeswoman told Reuters that Telenor could not comment on military directives due to the risks for employees.