In Q1 2023, Telenor ASA recognised a NOK 18.5 billion net gain in conjunction
with the combination of dtac and True in Thailand. The transaction created the
new True Corporation Ltd, listed on the Stock Exchange of Thailand. True is now
accounted for as an associated company, with Telenor holding a 30.2% stake, of
which 26.3% is directly owned.
As of 31 December 2023, the share price of True Corporation closed at THB 5.05,
implying that the market value of Telenor's stake had dropped significantly
below its initial per-share cost price of THB 8.15. According to IFRS Accounting
Standards, a significant or prolonged drop in quoted market prices below initial
cost price is objective evidence for impairment. Based on this, Telenor
considers it necessary to recognise an impairment related to the investment True
Corporation Ltd of NOK 8,037 million, aligning the carrying amount with the
market value of Telenor's equity stake as of 31 December 2023. In addition, the
shareholder loan provided to the joint venture holding Telenor's indirect
ownership share in True is recognised at fair value, resulting in a reduced
value of NOK 695 million, which will be reflected in the net financial items in
the fourth quarter.
This mark-to-market alignment has no cash implication and does not reflect any
changes to Telenor's view on the outlook and ownership of True Corporation.
Overall, the dtac-True Corporation transaction remains positive for Telenor and
True Corporation remains a key asset in Telenor's Asia portfolio.
Until the board of directors has approved the 2023 financial results, all
financial references in this stock exchange release are preliminary.
Investor contact:
Frank Maaø
+47 91674045
frank.maao@telenor.com
Media contact:
Ingibjörg Meyer-Myklestad
+47 90605505
ingibjorg.meyer-myklestad@telenor.com