Telenor to increase Unitech Wireless stake to 74%; plans investment of USD2.4 billion

20 Apr 2009

Norwegian telecom group Telenor plans to request permission from the Indian government to increase its stake in new cellco Unitech Wireless to 74%, according to the Economic Times. Telenor initially announced it would take a 60% stake in the cellco for INR61.2 billion in October 2008. However, in March 2009 it was revealed that the cellco’s cash-strapped parent company, the Unitech Group, revealed it would give away a further 7.25% stake for no further cost on the condition that it would not have to pump any more funds into the joint venture for the next two years. Subsequently, last month the two companies announced that they had completed the first stage of the deal, with Unitech Wireless receiving INR12.5 billion from Telenor in return for a 33.5% stake. The four-stage deal is expected to be completed by the end of the year. Telenor has also informed the government that it plans to invest up to INR112 billion (USD2.4 billion) in the mobile operator.

India, Telenor Group