Telenor decision on rights issue likely by mid-January

21 Nov 2008

According to Reuters, Norwegian telecoms group Telenor will wait until mid-January 2009 before finalising a decision on whether it will proceed with a rights issue to fund expansion in the Indian market. The report comes after indications at the beginning of November that the company was reconsidering its options to raise funds relating to its recent acquisition of a 60% stake in Indian cellco Unitech Wireless.

Additionally, Telenor CFO Trond Westlie reportedly confirmed that Telenor was currently negotiating a deal to share between 30,000 and 50,000 cell phone towers in India, which is understood to be crucial to the acquisition moving forwards. Commenting on the negotiations Mr Westlie said, ‘If that is not met, of course we have to reconsider whether or not we close’, adding that if Telenor were to walk away from the venture due to failure to secure a tower-sharing agreement it would not face a break-up fee.

Norway, Telenor Group