Sistema to take $1 bn writedown on India

The writedown is a non-cash item that will be recognised in Sistema's fourth-quarter results, eroding earnings.

FP Archives|Dec 20, 2014, 07:54:42 IST

Russian services conglomerate Sistema will take a writedown of nearly $1 billion related to the suspension of its Indian licences, sources close to Sistema said on Friday.

The writedown is a non-cash item that will be recognised in Sistema's fourth-quarter results, eroding earnings, one of the sources told Reuters. Sistema declined to comment.

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Around half of the writedown is related to a licence revaluation and the rest to goodwill, the Vedomosti newspaper quoted a source as saying.

The Supreme Court of India in February ordered the cancellation of 122 telecom licences held by eight operators, including Sistema and Norway's Telenor , over alleged irregularities in the way they were awarded in 2008.

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