OSLO (Reuters – Telenor received payments from the Myanmar operation sale over five years. The announcement was made by the Norwegian telecoms operator Telenor on Friday, as it revealed the closing of the transaction.

Telenor, in May 2021, reduced its Myanmar business value to 6.5 billion crowns (751 million USD) and then announced that the company would be selling it for $105million to Lebanese investment group M1 or local firm Shwe Byain P.

Telenor received $50 Million at Closing. It stated that the $55 million remaining will be paid in 5 equal installments over the next five years.

The accounts will not recognize the deferred payment due to Myanmar’s unstable situation.

Some Myanmar civil rights activists and Norwegian politicians have criticised the sale. They fear that it places the data of 18 millions people under the control of the junta.

Telenor was approved by Myanmar’s rulings last week for sale. Telenor claims it needed to leave Myanmar in order to maintain its core values regarding human rights and responsible business.

Telenor will record a loss of approximately 800 million crowns in its quarter-one accounts. It is the result of a reclassification for items that it previously had to account for.

The company stated that it will experience a negative cash flow impact in excess of 1.5 billion Crowns due to the “decognition of Telenor Myanmar’s cash balance and proceeds from closing”.

Reuters reports that Shwe Byain Phyu (whose chairman had a history in business ties with the military) will control 80% of Myanmar’s operation, while M1 will have 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”.

M1, Shwe Byain Phyu, and Myanmar’s military leaders did not respond immediately to emailed inquiries for comment.

($1 = 8.6495 Norwegian crowns)