Norway-based telecom company, 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 Norwegian krone (NOK) 8 billion three-year term loan, which may be used to finance the investment in Unitech Wireless, said the company in a statement today.
As a result of the new loan, Telenor has scrapped its proposed rights issue of NOK 12 billion. The rights issue was originally to be subscribed by the Norway government, which owns 54 per cent stake in Telenor.
Closing of the Indian transaction is subject to certain conditions being fulfilled, Telenor anticipates that this will take place during the first quarter of 2009. The company stated it remains confident that all conditions will be met within the indicated timeframe.
