A statement released by Telia Company on April 3 notes that its agreement with the Aga Khan Fund for Economic Development (AKFED) for the sale of Telia Company’s 60 percent holding in Central Asian Telecommunications Development B.V., which controls CJSC “Indigo Tajikistan” (Tcell), is no longer valid.

The agreement has reportedly expired since the Tajik antimonopoly agency did not reply by the stipulated deadline between Telia Company and AKFED.

“We have taken all relevant actions in trying to close the deal.  The proposed buyer of our interest in Tcell, AKFED, is an established investor in the region with multiple companies in its current portfolio and a long history in Tcell.  We are now assessing alternative ownership solutions for Tcell,” says Emil Nilsson, Senior Vice President, Head of Region Eurasia.

The Tajik operations are reported as discontinued operations and the book value of Telia Company's interests has been adjusted to zero, according to the statement.

In the agreement which was communicated in September 2016, the agreed price for Telia Company's interest was approximately 13 million U.S dollars in equity value.

Telia Company reportedly maintains its ambition to over time leave Region Eurasia and focus on the Nordic and Baltic region within the framework of the company’s New Generation Telco strategy.

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 noted that time 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 to AKFED, which currently holds 40 percent.