Telenor raises stake in Unitech Wireless

The Norway-based telecom company, Telenor, has pumped in Rs 2,022 crore in its India joint venture (JV) with Unitech Wireless, increasing its total stake in the venture to 67.25 per cent.

In a statement, the company said it had acquired a 7.15 per cent stake in Unitech Wireless by way of issuance of fresh shares and a final investment of Rs 2,022 crore.

Last year, real estate firm Unitech had sold a 67.25 per cent stake in Unitech Wireless to Telenor. The total investment in the JV stands at Rs 6,135 crore. The JV offers mobile services under the brand name Uninor in eight circles.

“Uninor will utilise this investment as working capital to strengthen its operations launched last year in the eight circles and to launch operations in new circles in 2010,” Uninor Managing Director Stein-Erik Vellan said.

Telenor Group Executive Vice-President and Head of Asian Operations, Sigve Brekke, also said the injection of equity will provide Uninor with working capital to continue the roll-out of services in new circles, and “to secure customer growth in the circles where Uninor is already available”.

The Union Cabinet had last year approved Uninor’s application to increase its foreign shareholding up to 74 per cent.