Telenor looking to raise INR80bn in India JV
Norway's Telenor ASA has initiated plans to raise up to INR80 billion in its Indian joint venture, the Times of India reported Monday.
Telenor and Indian real-estate company Unitech Ltd. are partners in Unitech Wireless, which offers mobile-phone services. Earlier this year, Unitech obtained a stay from a local court on the joint venture's plan to raise funds via a rights issue.
Unitech, whose stake in the joint venture is likely to come down in case it doesn't participate in the rights issue, opposes the fund-raising plan, saying that some of the actions Telenor proposes to take weren't in the best interests of the shareholders, media reports said earlier this year. The Times of India report said a higher court recently lifted the stay.
"Our primary concern is Unitech, and we have been dealing with them at the board level, but as long as they take part in the rights issue it should be fine," Unitech Wireless Managing Director Sigve Brekke told the newspaper.The executive added that the company could raise funds via a rights issue, as well as through debt.
The report also said that Telenor, which owns 67.25% of the joint venture, may induct a second Indian partner if Unitech doesn't participate in the rights issue, without citing any source.
It, however, said that Telenor isn't looking to raise its stake in Unitech Wireless, citing the executive.
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