Norwegian telecom group Telenor will take a higher stake of 67.25, up from a previously planned 60 per cent, in Unitech Wireless from its $1.2 billion investment in the Indian company announced last October.

Telenor and Unitech Ltd have agreed to proceed with completion of the transaction with certain adjustments, Telenor said in a statement on Tuesday, adding that the stake purchase will be completed by the end of 2009.

''While Telenor's initial investment under the agreement will continue to be the previously agreed Rs6120 crore (about $1.2 billion), it has been agreed that Telenor, after this investment, would be holding 67.25 per cent in Unitech Wireless (subject to regulatory approval)'', Telenor said in a website release.

Telenor signed an agreement on 28 October 2008 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.

Upon completion of the first phase of the investment, Telenor's ownership percentage will be 33.5 per cent.

The transaction, and the first phase of Telenor's investment, will be completed shortly, as the closing formalities related thereto have been finalised.

"As part of the closing negotiations we agreed to increase our ownership share, largely due to the macroeconomic development since the deal was made," Telenor spokesman Paal Kvalheim told reporters.

"The ownership share will increase from 60 to 67.25 per cent for the same capital injection," he said, adding that Telenor will reach this share by the end of this year.

Unitech, meanwhile, said it would receive around Rs400 crore ($80 million) in the first phase of the transaction and it plans to use the funds to repay debt.