Telenor injects Rs 1,250 cr in Unitech Wireless

Monday, 23 March 2009 15:58

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.

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