February 4, 2012  Print Email | Telenor closes Unitech Wireless deal
To invest $1.2 billion in the Indian firm by end-2009
Posted by Agencies at 07:46 AM GMT on Mar 21, 2009 | OSLO (REUTERS): Norwegian telecom group, Telenor has picked up an initial 33.5 per cent stake in Indian operator Unitech Wireless for $250 million, Telenor said on Friday, marking its entry into the world's second largest mobile telecom market.
 Telenor has injected an initial $250 million in Unitech Wireless and will invest the remaining $970 million in three tranches this year.
Once the $1.2 billion deal is completed, Telenor will own 67.25 percent of Unitech Wireless, as announced earlier.
Telenor unveiled the deal to buy a majority of Unitech Wireless from Indian property company Unitech in October.
It said earlier this week it would take 67.25 percent of the company instead of an earlier planned 60 percent because of economic developments in India.
Analysts and shareholders have criticised Telenor's plans to enter India which they say is an already crowded mobile telecom market -- the world's second biggest.
Scepticism over the deal forced Telenor to abandon plans for a share issue and instead to look to its own funds, new debt and retained dividends.
Last year, the total number of mobile connections in India increased by more than 100 million. To grab a share in the growing Indian market, Telenor has said that it will focus on a cost-efficient, swift and a flexible network roll-out to optimise profitability.
Unitech Wireless has recently entered into tower sharing agreements with Wireless-TT Info Service (Tata Teleservices' tower company) and Quippo Telecom Infrastructure, ensuring access to thousands of antenna sites at a reduced cost.
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