Home Economy Telenor to write down $724.5 mn investments in Uninor

Telenor to write down $724.5 mn investments in Uninor


New Delhi : Norwegian firm Telenor Saturday said it would write down investments into its Indian mobile arm — Uninor — worth about $724.5 million (4.2 billion NOK) following the Supreme Court’s order cancelling 122 2G licences, including 22 licenses of Uninor.

The company, however, said this would not affect its Indian operations and it intended to protect its investment.

“According to IFRS (International Financial Reporting Standards) accounting standard, Telenor is committed to continuously assess its book value of assets and liabilities,” the company said in a statement.

Following the current developments regarding the award of 2G licences, Telenor ASA has decided to write down NOK 4.2 billion ($724.5 million) related to its investments in India. The write down is an accounting exercise and has no impact on the running of Uninor’s operations and the fact that the Uninor operations will continue,” it added.

An international news agency had Friday said Telenor could quit India after the Supreme Court cancelled its mobile licenses and not wait for new market rules to be introduced.

“That is one alternative that is on the table,” the agency had quoted company chief executive Jon Fredrik Baksaas as saying when asked whether Telenor should heed calls by several company investors and analysts to quit the Indian market and cut its losses.

Uninor has over 36 million customers across the country.