Telenor Asia Pte has acquired an additional 15.5% stake in Unitech Wireless in the second tranche for Rs 1,130 crore, completeing the acquision of a total of 49% stake in the company.
In the first phase of the acquisition, Telenor had acquired a 33.5% stake in Unitech’s telecom arm for Rs 1,250 crore. Hence, Telenor’s total holding in Unitech Wireless is now 49%. Telenor will acquire a total of 67.25% stake in Unitech Wireless for a total of Rs 6120 crore.
Telenor has also paid Unitech Wireless around Rs 240 crore as share application money so that additional equity shares can be issued in Unitech Wireless to maintain its 49% stake holding in the company.
The deal, which was expected to be completed in December 2008, got delayed as Telenor’s process of arranging funds took time. Telenor had initially planned a rights issue to fund the deal but later scrapped it. It is funding the deal through a combination of cash flow and additional debt.
In terms of customers, Telenor is the seventh largest telecom firm in the world. The Norway government holds a 54% stake in Telenor.