TeliaSonera to book $630 million charges for Uzbekistan
TeliaSonera has written down the value of its operations in Uzbekistan by 5.3 billion kronor (approximately $630 million) as it seeks to discontinue its operations in Eurasia.
An additional non-cash impairment charge of 1.9 billion kronor related to its operations in Denmark will also be recorded, bringing the total charges to $844 million. The write-down was a result of updated earnings projections following the previously announced decision to withdraw from the planned joint venture with Denmark’s Telenor.
“We are well on track shaping the new TeliaSonera and the process to reduce our presence in Eurasia continues,” said Johan Dennelind, president and CEO of TeliaSonera.
“An important step was taken in December when we announced the divestment of Ncell in Nepal. As a consequence of this progress and current status in the overall divestment process, Region Eurasia will be reported as discontinued operations. When doing this we are obliged to change valuation method for these operations. This has resulted in an impairment charge relating to our operations in Uzbekistan.”
In December 2015, TeliaSonera announced that it was divesting its stake in Nepalese operation Ncell for over $1 billion, marking its first exit in Eurasia.