Unitech sells 60% in telecom arm to Norway's Telenor for Rs 6,120 cr

New Delhi, Oct 29 (UNI) Real estate firm Unitech has sold 60 per cent stake in its GSM mobile telecom arm to Norway-based Telenor for Rs 6,120 crore.

''Telenor has entered into a definitive agreement with Unitech Wireless whereby Telenor will invest over Rs 6,120 crores to subscribe to new shares in the company,'' said a Unitech statement.

Subject to regulatory approvals, Telenor will hold up to 60 per cent stake in Unitech Wireless, it said adding the company is in the process of applying for the necessary regulatory approvals.

The deal pegs the enterprise value of Unitech Wireless at Rs 11,620 crore.

The board of Unitech Wireless will be restructured with four members from Telenor and three from Unitech.

The Chairman will belong to Unitech, while Telenor will appoint the Managing Director of the company.

Unitech Wireless also plans to invest over three billion dollars over the next three years.

The company has pan-India licenses in all 22 circles, and plans to launch its services in first half of 2009.

Telenor is one of Norway's largest companies, which is owned 54 per cent by the Ministry of Industry and Trade, Norway.

UNI MP CS AS1942