Telenor buyers scrutinise Myanmar sale

OSLO, Feb 16 (Reuters) – A number of buyers in Telenor (TEL.OL) are searching for assurances from the Norwegian telecoms firm that buyer information will probably be protected following the sale of its operations in Myanmar.

Myanmar’s navy rulers have given the go-ahead for an area firm, Shwe Byain Phyu, to personal most of Telenor’s enterprise within the Southeast Asian nation, underneath a deal to be finalised quickly, Reuters reported on Friday.

Some human rights teams have mentioned the handover might put the info of 18 million folks inside the junta’s attain, with a number of demonstrations held in Myanmar in current days calling on Telenor to cease the sale altogether.

DNB Asset Administration, Telenor’s fourth-largest investor with a 1.64% stake, mentioned it had requested a gathering with the corporate to debate the approaching exit, describing the scenario as “a substantial dilemma” for Telenor.

“We plan to debate the administration and therapy of non-public information each previous to and following any sale,” mentioned Janicke Scheele, the investor’s head of accountable investments.

Storebrand Asset Administration, Telenor’s eighth-largest investor with a 1.31% stake, mentioned it was asking the corporate to conduct “human rights due diligence” because it departs the nation.

In an emailed assertion, Kamil Zabielski, the top of sustainable funding at Storebrand, mentioned Telenor wanted to evaluate the chance that its property could possibly be misused after it leaves.

“Telenor should consider whether or not any buyer information (or the present infrastructure) that will ultimately be transferred could possibly be misused by the navy by any buying counterparty and take applicable measures to keep away from or mitigate these dangers,” its head of sustainable funding, Zabielski instructed Reuters.

Pension fund KLP, which owns 0.96%, mentioned it was additionally scrutinising the sale.

“We’re in dialogue with Telenor and different stakeholders on this specific matter with the intention to get a full image of the circumstances,” KLP’s head of accountable investments, Kiran Aziz, instructed Reuters.

In response to the investor statements, Telenor mentioned it needed to adjust to the regulation in Myanmar to guard its workers.

“Some have acknowledged that they perceive our want to go away the nation, however have requested us to shut the operation and delete information,” mentioned a Telenor spokeswoman.

“Each within the occasion of a sale and if Telenor Myanmar returns its working license, the info should nonetheless be saved in accordance to native laws and license phrases.”

“We can not violate native legal guidelines with out exposing our workers to hazard, which is totally unacceptable,” she added.

Shwe Byain Phyu and the Myanmar navy junta didn’t instantly reply to requests for remark.

The Norwegian authorities, which is Telenor’s largest shareholder with a stake of almost 59%, didn’t instantly reply to a request for remark.

It was unclear what influence the shareholder strain could have on Telenor’s exit from Myanmar.

The corporate sought to go away the nation after final yr’s navy coup, telling Reuters in September it was promoting its operations to keep away from European Union sanctions after “continued strain” from the junta to activate intercept surveillance know-how. learn extra

Army leaders late final yr rejected its plan to promote its native operations – which as soon as contributed as a lot as 7% of its earnings — to Lebanese funding agency M1 for $105 million.

As a substitute, they needed M1 to companion with Shwe Byain Phyu, three sources aware of the matter instructed Reuters. learn extra

In keeping with communications reviewed by Reuters, Shwe Byain Phyu, whose chairman has a historical past of enterprise ties to the navy, will personal 80% of the unit underneath a handover anticipated to be concluded shortly.

A Telenor spokeswoman beforehand instructed Reuters by e-mail that it had had no dialogue with Shwe Byain Phyu and its sale settlement was with M1, which was “the one social gathering now we have chosen”.

Shwe Byain Phyu has denied all ties to the Myanmar military and mentioned it was “chosen by Telenor … as a result of it was probably the most unrelated to the navy”.

In an emailed assertion to Reuters, M1 mentioned it “doesn’t compromise on human rights points, illegal interception and surveillance requests” and mentioned it was dedicated to assembly all its authorized and moral obligations to its customers worldwide.

“Ought to the regulatory choice come out in M1 Group’s favor, we are going to announce the id and particulars of the entity that will be the authorized proprietor of the Telenor Myanmar operation, in the end,” M1 mentioned.

It added it was dedicated to preserving the Telenor Myanmar operations.

Two workers of Telenor Myanmar, who requested to not be named, citing security concerns, instructed Reuters final week that authorities had already requested the decision logs of opponents of the junta and the final recognized location of individuals on the run.

They mentioned Telenor had complied.

Telenor’s spokeswoman beforehand instructed Reuters it was not potential for Telenor to touch upon directives from the navy, on account of dangers to workers.

Extra reporting by Fanny Potkin in Singapore and Poppy McPherson in Bangkok: modifying by Carmel Crimmins

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