By Telenor, the Norwegian telecommunications provider, has announced that it will be booking a non-cash impairment of 8.04 billion Norwegian kroner ($760.3 million) in the fourth quarter of 2023. This impairment is related to Telenor’s investment in True Corp, a Thai telecom company that was created through the merger of Telenor’s Total Access Communication unit (Dtac) and Charoen Pokphand Group’s True.
Currently, Telenor holds a 30.2% stake in True Corp, with 26.3% directly owned. However, the share price of True has decreased significantly, closing at 5.05 Thai Baht ($0.14) at the end of 2023. This drop in share price is below Telenor’s initial per-share cost price of THB8.15, prompting Telenor to recognize the impairment and adjust the carrying amount of its stake to match the market value.
In addition to the impairment, Telenor also announced that a shareholder loan provided to the joint venture holding its indirect ownership share in True will be recognized at fair value. This will result in a reduced value of NOK695 million.
It is important to note that this impairment does not have any cash implication and does not reflect any changes to Telenor’s view on the outlook and ownership of True. Telenor remains positive about the Dtac-True Corporation transaction and considers True Corporation to be a key asset.
(Contact details have been removed)
Comments