The completion of one of the most hyped deal of the year between Unitech Wireless and Telenor has now been delayed by about a month to January 2009 from the anticipated time frame of the transaction being wrapped by this year's end.
A Telenor spokesperson told PTI, "Closing of the Unitech Wireless transaction in India is expected to occur during January 2009. The closing is subject to certain conditions being fulfilled. Telenor and its partner, the Unitech Group, anticipate that not all conditions for closing will be fulfilled before year-end".
An industry source said the reason for the delay might have been the Telenor's search for alternative sources of funding the Rs 6,120 crore buyout for Unitech's 60% stake.
The Norway-based company was planning to raise money through the rights issue to invest in Unitech.
Telenor's 54% stake is held by the government. Telenor on November 26 said it had retained Deutsche Bank to help reassess the alternative ways of funding the investment. The evaluation of alternatives, including the previously announced rights issue of NOK 12 billion, is ongoing and Telenor intends to announce a decision on the funding of the investment at, or prior to, the closing of the Unitech Wireless transaction. It is believed that the telecom deal is to finish off Rs 2,000 crore debt from Unitech's balance sheet.
The Norway-based company had on October 29, 2008 announced the expected closing of the Unitech Wireless transaction in India by the 2008-end.
