Telenor to get 67.25 per cent stake in Unitech Wireless

Jon Fredrik Baksaas, President and CEO, TelenorNorwegian 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.