The Hindu : Business : Telenor raises stake in Uninor

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Thursday, Feb 11, 2010
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Telenor raises stake in Uninor

Corporate Reporter

CHENNAI: Uninor has announced that it has received the fourth and final round of the planned fresh equity investment from the Telenor Group. With this, the Telenor Group has invested a total of Rs. 6,120 crore of new equity into the company, taking its ownership to 67.25 per cent, as per the shareholders’ agreement. Uninor is the brand name of United Wireless.

The Cabinet Committee on Economic Affairs (CCEA) had approved Uninor’s application to increase its foreign shareholding up to 74 per cent in 2009.

Unitech Wireless has received Rs. 2,022 crore from Telenor Asia for the acquisition of 7.15 per cent stake in the company by way of issuance of fresh shares, it said in a filing to the Bombay Stock Exchange

According to Stein-Erik Vellan, Telenor group’s investments in Uninor, as agreed between the shareholders, are now complete. Uninor would utilise the investment as working capital to strengthen its operations in the eight circles launched last year and start operations in new circles in 2010, Mr. Vellan said.

Uninor aims at achieving earnings before interest and depreciation break-even within three years and operating cash flow break-even within five years of launch of operations and a market share of eight per cent by 2018, says a release.

In December 2009, Uninor successfully launched its services in eight circles across India.

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