den 21 december 2015

Important legal information

The Swedish phone company TeliaSonera plans to exit the Asian and Russian markets and focus on the European market in general and the Scandinavian market in particular. By selling a 60 percent stake of Ncell, a Nepalese phone carrier, for USD 1.03 billion to Axiata Group Bhd, a first step is done to unbundle the international conglomerate. Furthermore TeliaSonera announces that they will use the positive net cash effect of USD 877 million to cut debt.

The central idea of TeliaSonera is to capitalize on higher demand on European markets. Former Soviet countries and Asia suffers under bribery accusations and do not fit in the future strategy of TeliaSonera. Ncell is dealing with legal probes in Sweden, the Netherlands and with the U.S. Department of Justice over an unclear purchase in 2007 of Uzbek phone licenses.

The market participants welcomed TeliaSonera’s strategic move. Total market value of TeliaSonera is SEK 183 billion.

Axiata, already operating in Malaysia, Indonesia, India and Singapore, is expanding with its investment in the Nepalese market. According to Axiata’s website they have more than 260 million customers. Axiata’s shares were halted at Malaysian stock exchange on Monday after the announcement.



2023-01-28 07:17:51