Telenor withdraws proposed rights issue

27 Jan 2009

Reuters is reporting that Norwegian telecoms group Telenor has withdrawn plans to carry out a share issue to fund investment in Indian cellco Unitech Wireless. Telenor has announced it will instead raise funds for the mobile operator through cash flow and net debt, also revealing that it has signed a USD1.2 billion three-year loan agreement. The company has also proposed that there will be no dividend payout in 2008 or 2009. Commenting on the development a statement from the operator noted, ‘Closing of the Indian transaction is subject to certain conditions being fulfilled…(and) Telenor anticipates that this will take place during the first quarter of 2009.’

In separate but related news, Unitech Wireless is reportedly in talks regarding a tower sharing arrangement with Reliance Communications (RCOM) and Tata Teleservices (TTSL). A tower sharing agreement is one of the preconditions of the Telenor acquisition of a 60% stake in Delhi-based Unitech Wireless.

India, Norway, Telenor Group,

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