Unitech closes deal with Telenor

NEW DELHI: Unitech has informed the BSE that it has closed its deal with Nordic telecom firm Telenor for a controlling stake in Unitech Wireless.
In a statement, the company said on Tuesday that "On October 28, 2008 Telenor executed an agreement to acquire a controlling interest in Unitech Wireless, through subscription for new shares. The subscription for new shares in Unitech Wireless will, as previously announced, be completed in four phases." Telenor and Unitech Ltd have agreed to proceed with completion of the transaction with certain adjustments.While Telenor's initial investment under the agreement will continue to be the previously agreed Rs 61.2 billion (roughly $1.2 billion), it has been agreed that Telenor, after this investment, would be holding 67.25% in Unitech Wireless (subject to regulatory approval). Upon completion of the first phase of the investment, Telenor's ownership percentage will be 33.5%.
The transaction, and the first phase of Telenor's investment, will be completed shortly, as the closing formalities related thereto have been finalised."
Telenor's Rs 6,120 crore investment was originally to acquire 60% stake in Unitech Wireless but it will now get over 67% control following a fall in the target company's share value.
Unitech Wireless has pan-India telecom licences in 22 circles. Telenor is a global provider of telecommunications, data and media communication services.