Norwegian telecom firm Telenor ASA on Wednesday completed its investment in its Indian joint venture, Unitech Wireless, by acquiring an additional 7.15% stake for Rs 2,220 crore. With this, Telenor has completed its acquisition of 67.25% in the Indian company.
Telenor completed the acquisition of the 67.25% for Rs 6,120 crore by issuance of fresh shares. In 2008, realty major Unitech sold 67.25% stake in Unitech Wireless to Telenor. According to a statement released by the company, the investments would be used in Uninor, the JV offering GSM mobile services. Uninor managing director Stein-Erik Vellan said, ?Uninor would utilise this investment as working capital to strengthen its operations in the eight circles where it has launched operations last year and for launching operations in new circles in 2010?.
In the first phase, Telenor had invested Rs 1,250 crore in Unitech Wireless for a 33.5%. It was followed by Rs 1,130 crore for a 15.5% holding and another Rs 1,493 crore for a further 11.1% stake.
Last year, Uninor received approval from the Cabinet Committee on Economic Affairs to increase foreign holding in the company up to 74%. In December, the JV launched GSM mobile services in the country under the Uninor brand.
Unitech Wireless is the first among those who were offered licences in January 2008 to launch mobile services. It is operating in eight circles. Unitech Wireless holds a pan-India UAS licence to offer services in 22 circles. It has also received the spectrum to roll out these services in 21 of the 22 circles. It has also received the spectrum to roll out these services in 21 of the 22 circles.