Telenor Buys 60% Stake in Indian Mobile Operator

Telenor has confirmed that it is to take a 60% controlling stake in Indian green-field mobile operator, Unitech Wireless for a consideration equivalent to US$1,070 million. The company will be subscribing to a new share issue by the company.

"Gaining access to the world's second largest mobile market is a major achievement for Telenor. Entering the Indian mobile market gives Telenor a unique possibility to further enhance the Telenor Group's position as one of the leading emerging markets operators, and enables us to take part in the development and growth opportunities in one of the fastest growing telecom market in the world," said Jon Fredrik Baksaas, President and CEO of Telenor.

Unitech Wireless has pan-Indian telecommunications licences in all 22 telecom circles, and plans to launch its services in mid 2009.

"We highly appreciate this partnership with Telenor, and believe that Unitech Group's local position and strengths coupled with Telenor's technical, operational and marketing expertise will form a winning team. Telenor's experience from growth markets in Asia are also a great benefit for the partnership," said Sanjay Chandra, Managing Director, Unitech Ltd.

The initial equity injection in Unitech Wireless will be made by Telenor Asia in four tranches to be completed before the end of September 2009. The investment will be funded through draw-down on existing credit facilities and/or issuance of short-term commercial paper. Telenor intends to secure funding by raising approximately NOK 12 billion through a rights issue in Q1 2009. The Norwegian Government has stated its willingness, under certain conditions, to put forward a parliamentary proposition to participate for it's pro rata share of the rights issue.

Posted to the site on 29th October 2008