Telenor to Book $8 Billion Non-Cash Impairment on True Corp Stake

By Dominic Chopping

Telenor will book a non-cash impairment of 8.04 billion Norwegian kroner ($760.3 million) in the fourth quarter of 2023 related to its investment in True Corp.

The Norwegian telecommunications provider last year completed the merger of its Total Access Communication unit, known as Dtac, with Charoen Pokphand Group's True to create a Thai telecom company.

The new merged True Corp. is listed in Thailand with Telenor holding a 30.2% stake, of which 26.3% is directly owned.

At end of 2023, the share price of True closed at 5.05 Thai Baht ($0.14), implying that the market value of Telenor's stake had dropped significantly below its initial per-share cost price of THB8.15, it said.

Based on this, Telenor said it considers it necessary to recognise the impairment, aligning the carrying amount with the market value of its stake.

In addition, a shareholder loan provided to the joint venture holding Telenor's indirect ownership share in True is recognised at fair value, resulting in a reduced value of NOK695 million, it added.

"This mark-to-market alignment has no cash implication and does not reflect any changes to Telenor's view on the outlook and ownership of True," Telenor said.

"The Dtac-True Corporation transaction remains positive for Telenor and True Corporation remains a key asset."

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

02-05-24 0259ET