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Telecom major Telenor writes off Rs 3,500 crore India assets
NEW DELHI: Norwegian telecom major Telenor on Monday wrote off its remaining fixed and intangible assets in India worth Norwegian Krone 3.9 billion (over $680 million or Rs 3,500 crore) saying "the uncertainty has increased significantly" following the Supreme Court's ruling in February to cancel Unitech Wireless's 22 licences and the recent Trai recommendations on the re-auction of 2G licences and spectrum.
The statement from the company came a day after the company's Asia head Siggve Brekke told TOI that Telenor was considering exiting India if the regulator's recommendations were accepted by the government in their current form.
It joins Sistema and Etisalat in taking a hit on their balance sheets due to their exposure to India. All these companies have been affected by the Supreme Court order. Etisalat had written off around $820 million of its investment, while Sistema, which like Telenor is still to announce a pullout, took a $700 million hit. So, the three companies between them have written off close to Rs 15,600 crore due to their India exposure. Telenor and Sistema have also threatened to initiate international arbitration and seek damages from the government.
The Norwegian firm holds 67% stake in Unitech Wireless which was controversially awarded licences and spectrum by former telecom minister A Raja, who is facing charges of criminal conspiracy and corruption. In February, the company had announced a write down of around $730 million, taking the total to over $1.4 billion (around Rs 7,200 crore at the current exchange rate).
"Telenor is working actively towards Indian authorities to bring forward an acceptable framework for continued operations. As a precautionary measure, Telenor ASA has decided to write down the remaining fixed and intangible assets in India amounting to NOK 3.9 billion. The write down will be included in Telenor's results for the first quarter 2012, to be presented on 8 May 2012. After the write down, Telenor has no further accounting exposure related to India as of 31 March 2012," the company said in a statement on Monday.
read more,
Telecom major Telenor writes off Rs 3,500 crore India assets - The Times of India
NEW DELHI: Norwegian telecom major Telenor on Monday wrote off its remaining fixed and intangible assets in India worth Norwegian Krone 3.9 billion (over $680 million or Rs 3,500 crore) saying "the uncertainty has increased significantly" following the Supreme Court's ruling in February to cancel Unitech Wireless's 22 licences and the recent Trai recommendations on the re-auction of 2G licences and spectrum.
The statement from the company came a day after the company's Asia head Siggve Brekke told TOI that Telenor was considering exiting India if the regulator's recommendations were accepted by the government in their current form.
It joins Sistema and Etisalat in taking a hit on their balance sheets due to their exposure to India. All these companies have been affected by the Supreme Court order. Etisalat had written off around $820 million of its investment, while Sistema, which like Telenor is still to announce a pullout, took a $700 million hit. So, the three companies between them have written off close to Rs 15,600 crore due to their India exposure. Telenor and Sistema have also threatened to initiate international arbitration and seek damages from the government.
The Norwegian firm holds 67% stake in Unitech Wireless which was controversially awarded licences and spectrum by former telecom minister A Raja, who is facing charges of criminal conspiracy and corruption. In February, the company had announced a write down of around $730 million, taking the total to over $1.4 billion (around Rs 7,200 crore at the current exchange rate).
"Telenor is working actively towards Indian authorities to bring forward an acceptable framework for continued operations. As a precautionary measure, Telenor ASA has decided to write down the remaining fixed and intangible assets in India amounting to NOK 3.9 billion. The write down will be included in Telenor's results for the first quarter 2012, to be presented on 8 May 2012. After the write down, Telenor has no further accounting exposure related to India as of 31 March 2012," the company said in a statement on Monday.
read more,
Telecom major Telenor writes off Rs 3,500 crore India assets - The Times of India
