MICROCAPITAL BRIEF: Norway’s Telenor Group Expresses Concern over Claim of Bangladeshi Government to Grameen Business

Telenor Group, a Norwegian mobile services provider, reportedly expressed concerns about the ongoing dispute over the ownership of social businesses historically linked with Grameen Bank, a Bangladeshi microfinance institution (MFI). The Bangladesh government, which owns ten percent of Grameen Bank, claims that Grameen Bank owns a share of the 54 organizations that bear the word “Grameen” in their name. Therefore, according to the government, Grameen Bank should receive dividends from these institutions. Grameen Bank argues that it has no legal link to these social businesses.

Telenor Group owns 55.8 percent of telecommunications service provider Grameenphone (GP), one of the 54 Grameen businesses identified by the Bangladesh government. Telenor Group stated that “it would consider all available legal options to secure its investment in Bangladesh and protect the future of GP” [1].

As of 2013, Telenor Group provides mobile services in 12 countries and serves approximately 148 million subscribers.  For the year 2011, Telenor Group reported total assets of NOK 166 billion (USD 29 billion). For the year 2011, Grameenphone reported total assets of NOK 109 billion (USD 18.9 billion) and approximately 35 million subscribers [2].

By Brendan Millan, Research Associate

About Telenor Group
Founded in 1855, Telenor Group is a telecommunications company based in Norway. As of 2013, Telenor Group provides mobile services in 12 countries and serves approximately 148 million subscribers.  For the year 2011, Telenor Group reported total assets of NOK 166 billion (USD 29 billion).

About Grameen Bank
Grameen Bank is a Bangladeshi microfinance institution that provides loans to poor entrepreneurs in rural areas. It was founded in 1976 by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. As of December 31, 2011, Grameen Bank reported to the US-based nonprofit Microfinance Information Exchange total assets of USD 1.63 billion, return on assets (ROA) of 0.41 percent, return on equity (ROE) of 6.82 percent, gross loan portfolio of USD 921 million and total deposits of USD 1.65 billion. For the year 2012, Grameen Bank reported a gross loan portfolio of USD 1 billion and total deposits of USD 1.65 billion.

About Grameenphone (GP)
Founded in 1997, Grameenphone (GP) is a telecommunications services provider in Bangladeshi.  For the year 2011, Grameenphone reported total assets of NOK 109 billion (USD 18.9 billion) and approximately 35 million subscribers.

Sources and Additional Resources:

[1] The Daily Star: “Telenor Worried over Grameen Bank Row”, http://www.thedailystar.net/newDesign/news-details.php?nid=269838

[2] Grameenphone: “Annual Report 2011”, http://investor-relations.grameenphone.com/IRPortal/annualreport/2011/AR%20F%202011_1.pdf

MicroCapital.org story, April 24, 2012, “Bangladeshi Government to Investigate Muhammad Yunus, Social Businesses Associated With Microfinance Institution Grameen Bank”, https://www.microcapital.org/microcapital-brief-bangladeshi-government-to-investigate-muhammad-yunus-social-businesses-associated-with-microfinance-institution-grameen-bank/

MicroCapital.org story, March 27, 2012, “Telenor’s Easypaisa, Adamjee Life Insurance Partner to Launch Free Life Microinsurance in Pakistan”, https://www.microcapital.org/microcapital-brief-telenors-easypaisa-adamjee-life-insurance-partner-to-launch-free-life-microinsurance-in-pakistan/

MicroCapital.org story, February 11, 2012, “Bangladeshi Government Reportedly Seeking Control of Grameen Bank ‘Empire’”, https://www.microcapital.org/microcapital-brief-bangladeshi-government-reportedly-seeking-control-of-grameen-bank-empire/

MicroCapital.org story, October 8, 2009, “Grameenphone (GP) of Bangladesh Closes Subscription for Country’s Largest IPO of $70.4m”, https://www.microcapital.org/microcapitalorg-story-grameenphone-gp-of-bangladesh-closes-subscription-for-country%E2%80%99s-largest-ipo-of-704m/

MicroCapital Universe Profile: Grameen Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Bank

MicroCapital Universe Profile: Grameenphone (GP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameenphone

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