Telenor to acquire 18.25% stake in Unitech Wireless

Telenor ASA, a Norway-based telecommunications company, has received approval from the Cabinet Committee of Economic Affairs in India to acquire an additional 25% stake in Unitech Wireless, an India-based telecommunications company.

Telenor had earlier acquired a 49% stake in Unitech Wireless and intends to increase its stake to 67.25% for a consideration of INR37,400 million ($814.19 million).

The Cabinet Committee of Economic Affairs provided approval for Telenor to raise its stake in Unitech Wireless up to the maximum foreign direct investment limit of 74%. The transaction was earlier approved by the Foreign Investment Promotion Board (FIPB) on August 21, 2009.

As per the agreement between the shareholders of Telenor and Unitech, the formal approval will allow Telenor to increase its investments to INR61,200 million ($1,332.32 million) to hold 67.25% stake in Unitech Wireless.

Deal Value (US$ Million) 814.19
Deal Type                Acquisition
Sub-Category             Minority Acquisition
Deal Status              Announced: 2009-10-19

Deal Participants

Target (Company)   Unitech Wireless
Acquirer (Company) Telenor ASA

% Acquisition 18.25%

Related terms: acquisition, india, investment, norway, telecommunications, wireless