The owner of Cambodian mobile provider Star-Cell has written down the firm’s value by more than US$100 million and had “no goodwill” related to its operations in the Kingdom.
In a mobile market it claimed was characterised by fierce competition and high churn rates, Star-Cell’s Sweden-based owner, TeliaSonera AB, said it was made clear in the first quarter of 2010 that its “ambition related to the Cambodian market had to be reviewed”.
After reassessing its worth in the most recent quarter, the company announced it had reduced the book value of Star-Cell by 678 million kronor (US$103.4 million).
“After the writedown there is no goodwill related to the Cambodian operations as per September 30, 2010,” it said in a third-quarter statement.
Goodwill is generally defined as the value of a firm beyond its tangible assets