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Our Bureau

New Delhi, March 20 Norway’s Telenor Group on Friday injected the first tranche of Rs 1,250 crore in Unitech Wireless, for a 33.5 per cent stake. Telenor’s remaining investment of Rs 4,870 crore will be made in three tranches during 2009.

In all, Telenor will infuse Rs 6,120 crore of new equity into Unitech Wireless to acquire 67.25 per cent stake. The balance stake will be held by Unitech Ltd.

Asked why the fund infusion in the first phase stood at only Rs 1,250 crore (according to the valuation, Telenor’s 33.5 per cent stake should technically work out to nearly Rs 3,048 crore), sources said that the shortfall for the first tranche will be met when Unitech Ltd exercises its right to convert certain debentures it holds in Unitech Wireless, into equity.

“At this point, Telenor will infuse the balance funds to maintain its stake in Unitech Wireless at the desired level,” they said.

Announcing the completion of the transaction, Telenor Group President and CEO, Mr Jon Fredrik Baksaas, said, “This marks the formal entry of Telenor into the world’s fastest growing mobile market and we are now embarking on an operational phase, and the preparations for the launch of our services.”

Pointing out that the total number of mobile connections in India had increased by more than 100 million during last year, Telenor said that in order to take part in this continuing growth, it will focus on a cost-efficient, swift and flexible network roll-out to optimise profitability.

Unitech Wireless has recently entered into tower sharing agreements with Wireless-TT Info Service Ltd (Tata Teleservices’ tower company) and Quippo Telecom Infrastructure Ltd, ensuring access to thousands of antenna sites at a reduced cost, the statement said.

More Stories on : Telecommunications | Alliances & Joint Ventures | Unitech Ltd

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