July 30, 2010  Print Email | Telenor pays first tranche in $1.2 billion Unitech Wireless deal
Will own 67.25 per cent of wireless operator
Posted by Agencies at 10:18 AM GMT on Mar 20, 2009 | OSLO (Reuters): Norwegian telecom group Telenor has carried out the first stage of its investment in Indian operator Unitech Wireless, paying an initial $250 million in for a 33.5 per cent stake. It will inject the remaining $970 million in three tranches this year, Telenor said today.
Once the $1.2 billion deal is completed, Telenor will own 67.25 per cent 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 per cent of the company instead of the earlier planned 60 per cent 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.
Telenor shares were off 0.7 per cent at 34.55 crowns at 0906 GMT, against the trend of a rising Oslo bourse.
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