Jan 28, 2009

Business - Telenor raises $1.9-bn loan to fund Unitech Wireless acquisition

Telenor-Unitech Wireless deal is finally set to see the light of the day. Telenor on Tuesday announced that the company has managed to raise a loan of 8 billion NOK ($1.85 billion) to fund its acquisition of Unitech Wireless.

"Telenor has decided to fund its investment in Unitech Wireless in India through a combination of cash flow and issuance of additional debt. Telenor has signed a NOK 8 billion three-year term loan, which may be used to finance the investment in Unitech Wireless," said a company statement.

Earlier, the company wanted to raise NOK 12 billion ($1.78 billion) through a rights issue. But the company said on Tuesday that it had withdrawn the "previously proposed rights issue of NOK 12 billion.

" Telenor has also said that there would be no payment of dividend to shareholders for 2008. A final decision on dividend proposal for 2009 will be made after closing of financial accounts for 2009.

Earlier, the investors in the company resisted Telenor's purchase of a 60 per cent stake in Unitech Wireless for $1.07 billion. Unitech Wireless has all-India licence for providing GSM services.

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