Telenor may oust Unitech, seek new Indian partner
27 Sep 2011
The Norwegian telecom operator says it will go ahead with its rights issue, sidelining Unitech if necessary.
Telenor, the Norwegian majority owner of mobile services company Uninor, said on Monday that it might replace its Indian partner Unitech Wireless if its proposed rights issue continues to be blocked by Unitech.
In the wake of a favourable verdict from the Punjab & Haryana High Court, Telenor announced in Oslo that it has initiated the rights issue to secure long-term funding ''in the absence of loans from Indian banks''.
In an interview with The Economic Times, Telenor chief executive Fredrik Baksaas said it will look at inducting another partner for its Indian operations if Unitech ''does not meet its obligations'' and participate in the proposed Rs8,200-crore rights issue.
Baksaas said Unitech was bound to meet its part of the financing for their Indian operations. Telenor has a 67.25-per cent in the joint venture, while Unitech owns the rest.
"We hope this (rights issue) will be subscribed to by both owners of the company to give Unitech Wireless the funds it needs to continue its strong development in the Indian market," a Telenor spokesman in Oslo said.
