Telenor Sells $3.9 Billion Stake in Thailand's True Corporation

This article first appeared on GuruFocus.

Telenor (TEL, Financials) announced it will sell its 30.3% stake in Thailand's True Corporation for 39 billion Norwegian crowns, or about $3.9 billion, marking another major step in its plan to scale back operations in Asia.

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The Norwegian telecom group will sell 24.95% of its shares to Arise Digital Technology, which is owned by Thai businessman Suphachai Chearavanont. The other 5.35% will be sold two years later. The deal is likely to be done in the next several months.

Telenor left Pakistan in December, and this move could lead to more acquisitions involving its shares in Malaysia's CelcomDigi and Bangladesh's Grameenphone. Benedicte Schilbred Fasmer, the CEO, said that the company is "delivering on its strategy" to make its structure simpler and focus on areas with strong returns.

Telenor plans to make 14.7 billion Norwegian crowns from the transaction, which would likely improve its balance sheet and help its Nordic businesses thrive.

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