Baku, Azerbaijan, July 17
By Elena Kosolapova – Trend:
The Scandinavian telecommunications company Telia faces an impairment loss relating to its Uzbek operations.
Due to increased regulatory and currency risks in Uzbekistan as well as an updated view of the valuation ranges for Ucell, the company’s best estimate of the risk adjusted debt free value of its Uzbek subsidiary Ucell has been reduced from SEK 3.3 billion to SEK 1.3 billion (1 SEK = $0.12)as of June 30, 2017, Telia said in a message.
“An impairment loss relating to Ucell of SEK 1.5 billion (after changes in carrying values and foreign exchange rates) impacts net income in discontinued operations in the second quarter of 2017,” the company said.
The impairment has no cash flow effect.
According to the company, changes in any of the estimated risk adjustments made for Ucell, would have a material impact on the estimated fair value.
“The most significant impact on fair value will be the buyer’s ability to operate in the country and convert local currency,” Telia said.
Earlier Telia (former TeliaSonera) announced its plans to withdraw from the Eurasia region, including Azerbaijan, Uzbekistan and Kazakhstan, by the end of 2017.