A statement released by Telia Company last month notes that its subsidiary the mobile operator Tcell finds itself in a very difficult situation in Tajikistan.
In September last year it was announced that the 40 percent minority shareholder of Tcell, the Aga Khan Fund for Economic Development (AKFED), would acquire Telia Company’s 60 percent, the statement says, noting that the closing of the sale is subject to local Tajikistan Antimonopoly Commission approval.
“As of today, a clear response on the application has yet to be received, even though the legislated time period lapsed on November 29, 2016.
“In addition to this, Tcell faces tax claims it considers to be unlawful, as well as lack of payment on debt owed to it by the state owned operator Tajik Telecom.
“These are issues that Telia Company, along with AKFED, would like to bring up in a meeting at the very highest level.”
Recall, Telia Company noted on January 17 that the Tajik operator Tcell has appealed what is considered to be an illegal tax claim.
The authorities in Tajikistan are basing their tax claim on revenue that Tcell has never generated, so called “un-realized revenue,” Telia Company said, noting that Tcell and its advisors are of the opinion that there is no legislative support in the Tajik Tax Code.
“The claim is for 155 million somoni including penalties and interests and it follows a tax audit for the period May 2015 to June 2016 made by the Tajik tax authority. As a comparison this is more than the EBITDA-result for 2015. Should Tcell not be successful in its appeal it would put very severe financial strain on Tcell.”
Emil Nilsson, Senior Vice President and Head of Business Region Eurasia, noted that they were very concerned with the situation, which according to them is “totally unacceptable.”
In September last year, Telia Company announced that it had signed an agreement to sell its 60 percent holding in Central Asian Telecommunications Development B.V.CATD, which controls CJSC “Indigo Tajikistan” (Tcell), to the Aga Khan Fund for Economic Development (AKFED), which currently holds 40 percent.
“At the time of signing the transaction was expected to close by the end of the year (2016) subject to necessary regulatory approval. Currently it is difficult to project when that will happen, as the time period for the necessary approval has expired without any clear response from the relevant authority,” Telia Company said.
