Telenor makes first payment of Rs 1,250 cr to Unitech arm

Marking its formal entry into the world's fastest growing wireless market, Norway-based Telenor Group today said it has completed the Unitech Wireless transaction and made the first investment of Rs 1,250 crore that gives it a stake of 33.5 per cent in the telecom JV.

Telenor will inject a total of Rs 6,120 crore of new equity into Unitech Wireless for 67.25 per cent stake in the firm. Telenor's remaining investment of Rs 4,870 crore will be completed in three tranches during 2009.

Following this investment, Telenor's ownership stake in Unitech Wireless is 33.5 per cent, Telenor, Fornebu-based Telenor said today.

"This marks the formal entry of Telenor into the world's fastest growing mobile market and we are now embarking on an operational phase and the preparations for the launch of our services," Telenor Group President Jon Fredrik Baksaas said.

Unitech Wireless has recently entered into tower sharing agreements with Wireless-TT Info Service Ltd (Tata Teleservices' tower company) and Quippo Telecom which was one of the pre-condition to close the deal .

"We are looking forward to take a key role in developing a new Indian mobile operator, leveraging on our track record from providing mobile services to people in emerging and fast-growing markets," Baksaas added.