Telenor raises $1.9-bn loan to fund Unitech Wireless acquisition | india | Hindustan Times
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Telenor raises $1.9-bn loan to fund Unitech Wireless acquisition

india Updated: Jan 27, 2009 20:44 IST
HT Correspondent
HT Correspondent
Hindustan Times
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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 But the company said on Tuesday that it had withdrawn the “previously proposed rights issue of NOK 12 billion.”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.