Telenor affirms buying 60% stake in Unitech Wireless

Norwegian telecoms group Telenor announced a bold move to enter the Indian mobile market through a $1.07 billion acquisition.

Telenor said it would buy 60 per cent of Indian operator Unitech Wireless for $1.07 billion and secure funding through a rights issue of about 12 billion Norwegian crowns ($1.74 billion) in the first quarter of 2009.

Telenor expects to close the deal by the end of 2009 and that the venture would break even on EBITDA (earnings before interest, tax, depreciation and amortisation) within three years.

Source: Financial Express