wordpress blog stats
Connect with us

Hi, what are you looking for?

Telenor Gets 60% In Unitech Wireless For $1.07 Billion; Govt Approval Pending

Unitech Wireless, Telenor

Unitech Wireless, Telenor

Update: Do read our coverage of the Telenor Investment call for India, where the company said they’re not very keen on 3G Auctions. More inputs on targets, spectrum allocation, and fund-raising to finance this deal. All that and more here.

Norwegian telcom operator Telenor has reached an agreement to pick up 60 percent stake in Unitech Wireless for $1.07 Billion. Unitech Wireless plans to roll out services in mid 2009. The company currently has around 250 employees. Unitech Wireless plans a fresh issue of shares for allotment to Telenor. Earlier last month, there were reports of Telecom Italia picking up stake in Unitech, which the Italian operator had subsequently denied.

In Asia, Telenor already has operations in Pakistan (Telenor Pakistan), Bangladesh (Grameenphone), Malaysia (DiGi) and Thailand (dtac).

Telenor To Raise Funds To Finance The Deal
The initial equity injection in Unitech Wireless will be made by Telenor Asia Pte. Ltd. in four tranches to be completed before the end of September 2009. Telenor will raise around NOK 12 Billion (around $1.786 Billion / Rs. 8860 crores) in funds through a rights issue in the first quarter of 2009. The Norwegian Government has stated its willingness to participate in this rights issue.

This fund-raising, and its timing, is very interesting, given that the 3G auction has been pushed to the end of January. More so, if it gets pushed any further, the auctions may get stalled due to elections in India. An industry insider had once told me, don’t expect the auctions with A.Raja as the Telecom Minister. That might just be the case.

Advertisement. Scroll to continue reading.

Valuation: $1.783 Billion
Unitech Wireless has licenses for all 22 circles in India, and a 60 percent sale is certainly a significant majority sale. The company paid a meagre Rs. 1650 crores (around $332.78 million at current rates) for the license, and based on this stake sale, it is now valued at around $1.783 Billion. Update: According to Telenor, Unitech Wireless “has an enterprise value of $1.1 Billion.” More here.

Government Approval
The deal will require government approval, and might hit a roadblock because of Telenors other investments – particularly in Telenor Pakistan and Bangladesh’s Grameenphone – where there may be security concerns.

Other New Telcos:
Swan Telecom sold 51 percent stake to Etisalat
— Loop Telecom, a sister concern of BPL Mobile is yet to close funding, though BPL has raised money.
— Shyam Telelink has sold 49 percent stake to Russian conglomerate Sistema. Sistema intends to increase stake.
More here.

Related:
Telecom Italia Denies Report On Unitech Wireless Deal
Etisalat Gets 45% In Swan Tele For $900 Million

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

You May Also Like

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ