Ooredoo Group reached a definitive agreement to sell its Myanmar unit to Singapore-based Nine Communications for around US$576 million, making it the second operator to depart the country since the military coup.
Ooredoo stated that it sold 100% of its equity in Ooredoo Asian Investments which owns Ooredoo Myanmar and Ooredoo Myanmar Fintech.
The board approved the transaction of directors of Ooredoo and Nine Communications. The deal remains subject to customary closing conditions and regulatory approval in Myanmar.
Nine Communications is owned by conglomerate Link Family Office which has over 40 years of dealing in the telecoms industry.
Aziz Aluthman Fakhroo, CEO and managing director of Ooredoo Group said: “Ooredoo Group has gone through an extensive business review resulting in a reassessment of its overall strategic direction.
“The difficult decision to divest from our Myanmar business is a direct result of this review to reshape our portfolio as a leading telecommunications company. It was important for us to make this call at a time when Ooredoo Myanmar is performing at its strongest to ensure the business continues from strength to strength. We will ensure a smooth transition with the least possible disruption adhering to all local requirements”.
Ooredoo Myanmar began operations in 2014. Telenor Group was the first operator to leave after it sold its Myanmar unit to M1 Group earlier this year for US$105 million after the government ordered operators to shut down connectivity services after a coup and mass political protest in the country.