Fanny Potkin, Poppy McPherson

SINGAPORE (Reuters). -Myanmar’s junta gave the final approval to the sale of Telenor, the Norwegian telecommunications firm in Norway’s country, to a local business and a Lebanese investing firm.

Telenor President and CEO Sigve Brüke stated that Telenor needed to be out of Myanmar because the local laws are incompatible with European law.

He said, “The security situation has become extremely dire and is deteriorating.”

Reuters earlier reported Friday’s approval, citing three sources who were familiar with the matter.

Telenor must transfer its Myanmar unit to the new owners within five working days according to the approval letter sent March 15.

Myanmar officials did not respond immediately to email and telephone requests for comment.

Telenor is a major foreign investor in Myanmar and wanted to get out of the country last year after the military coup. In September Telenor, a major foreign investor in Myanmar, told Reuters that it would be selling operations to avoid sanctions from European Union. The statement came after the junta continued to press for intercept surveillance technology to be activated.

There was much difficulty in its departure.

Reuters reported that the military leadership rejected M1’s plan to sell Lebanon to M1 Group last year for $105 million. M1 was to become a partner with Shwe Byain Phyu.

Reuters reported that Shwe Byain Phyu (whose chairman had a history in business ties with the military) will be the owner of 80%, while M1 will hold the remainder.

Shwe Byain, Phyu denied any connection to the Myanmar military and had previously stated that Telenor selected it “because it was unrelated to their military”.

Telenor claimed that they had agreed to sell the Myanmar unit with M1 only, adding that M1 needed regulatory approval in order for it to ensure a majority local owner following the close of the transaction between Telenor M1.”

Telenor was informed Friday by M1 that Shwe Byain Phyu would become the 80% owner following the transaction.

Telenor reported that Telenor had been assured by consultants who have done sanctions screening, Shwe Byain Phyu as well as its owners, aren’t currently subject to international sanctions.

M1 announced in a statement it had partnered Shwe Byain Phyu Group, to create a joint venture for Telenor Myanmar ownership called Investcom PTE.

According to the company, it will work closely with all stakeholders in order to complete the transaction “as soon as possible.”

Azmi T. Mikati, CEO of M1 Group stated in the statement: “M1 Group is committed support InvestcomPTE in providing essential communication services and investing in to develop the telecommunications network.”

Shwe Byain Phyu has not responded to Reuters’s requests for comment.

Reuters reported earlier in March that Telenor is planning to transfer $100 million held by its Myanmar operations to the unit’s new buyers – an amount roughly equivalent to how much it will be paid over five years, three people with knowledge of the deal’s terms said.

A junta minister said last year that senior foreign Telenor executives were prohibited from leaving Myanmar during negotiations regarding the sale.

Sources claimed that a Telenor executive from abroad had been granted permission to fly recently by authorities.

Requests for comments from the company regarding whether senior staff members were allowed to travel to Myanmar by them did not receive any response.

Telenor has been urged to erase personal information about customers by civil rights groups who claim that the agreement could allow the junta access to 18 million of its data.

Telenor stated that doing this would be against local law and put employees at risk.