CCEA to decide on Telenor's stake rise; Unitech optimistic
Press Trust of India / New Delhi Sep 04, 2009, 19:12 IST
The Cabinet Committee on Economic Affairs (CCEA) will decide on Norway's Telenor ASA's plan to increase its stake in its Indian JV Unitech Wireless to over 49 per cent with a planned investment of Rs 3,740 crore.
Unitech Wireless today said its application to increase foreign shareholding up to 74 per cent has been recommended for the consideration of CCEA by the Foreign Investment Promotion Board (FIPB).
At present, FIPB's recommendation on all foreign investments of over Rs 600 crore is to be considered by CCEA.
Unitech Wireless said it is optimistic of a favourable outcome that will allow the Telenor Group to raise its holding in Unitech Wireless to 67.25 per cent as per the current agreement with an option to increase this to 74 per cent.
Telenor had sought approval from FIPB to increase its stake in Unitech Wireless to 74 per cent from 49 per cent at present. FIPB has already approved it and recommended it to CCEA for consideration.
Norway-based Telenor is competing with formidable private and government operators for a share of the world's largest wireless market by users after China. Unitech Wireless expects to start offering mobile-phone services in the third or fourth quarter of the year ending March 31, 2010.
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