Norwegian telecom company Telenor is likely to sell 26% stake in its Indian mobile phone operations to a member of promoter family of Sun Pharmaceutical Industries, said a person familiar with the development. Sun Pharmaceutical is India's most valued pharma company promoted by Dilip Shanghvi.
“The announcement is expected today during the European exchanges timing,” he said.
A deal with a Sun Pharma investor may help the telecom firm to participate in the upcoming 2G auctions through the new company.
A Sun Pharma spokesperson denied that neither Sun Pharma nor Dilip Shanghvi is buying any stake in the telecom company.
“For Sun Pharma it does not make much sense to pick up stake in telecom sector as it is a pure pharmaceutical company and Shanghvi has also said that the company is looking at acquisitions in the same segment. However, in his personal capacity, he or one of his family members may make an investment in telecom,” a market analyst said.
The promoter family of Sun Pharma, led by Dilip Shanghvi, holds 63.69 per cent stake in Sun Pharma.
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Uninor, Telenor’s Indian venture with former partner Unitech, was terminated after the Indian apex court cancelled 122 licenses over a corruption scandal in Februbary this year. This included Uninor’s licenses. This month Unitech agreed to sell its stake in the Uninor venture. The venture services over 45 millon customers.
Telenor is set to bid for new spectrum next month when the government conducts the auction. There is a cap of 74% in foreign holding of an Indian telecom company so Telenor needed a new partner. The new partnership will help the company protect its $2.61 billion investment in the country.
Citi Group is the advisor to Telenor for the deal. The investment bank declined to comment for the story.