Telenor has bought 60% stake of Unitech Wireless by paying Rs. 6,120 crore.
Telenor:______________________________________________Telecom operator
Specialization:__________________________________________Greenfield operations (refers to a foreign company's investment in a new business.)
Based at:_____________________________________________Norway
World rank:___________________________________________7th
Subscriber base:__________________________ 159 million or 15.9 crore (65 million or 6.5 crore subscribers in Asia)
****************
Unitech Wireless:_______________________New generation Telecom Company(New entrant)
Chairman:_______________________________Sanjay Chandra
Strategic importance of the Deal:
The deal will take care of Unitech’s cash inadequacy (Telenor will be investing Rs 15,000 crore in the next three years) and inexperience in telecom sector. As Telenor will be the one that’ll be responsible for rolling out the services in mid-2009, in 13 circles (Total circles 22).
Telenor in return will get an opportunity to get an entry into world’s biggest markets.
Similar deals in the past:
Etisalat (UAE-promoted firm) bought 45% stake in Swan Telecom, for Rs 4,050 crore.
In Jun, 08 bought 40.8% of BK modi’s stake in Spice Communications for Rs 2,700 crore(2 circles, 4.5 million or 45 lakh subscribers).
Telenor:______________________________________________Telecom operator
Specialization:__________________________________________Greenfield operations (refers to a foreign company's investment in a new business.)
Based at:_____________________________________________Norway
World rank:___________________________________________7th
Subscriber base:__________________________ 159 million or 15.9 crore (65 million or 6.5 crore subscribers in Asia)
****************
Unitech Wireless:_______________________New generation Telecom Company(New entrant)
Chairman:_______________________________Sanjay Chandra
Strategic importance of the Deal:
The deal will take care of Unitech’s cash inadequacy (Telenor will be investing Rs 15,000 crore in the next three years) and inexperience in telecom sector. As Telenor will be the one that’ll be responsible for rolling out the services in mid-2009, in 13 circles (Total circles 22).
Telenor in return will get an opportunity to get an entry into world’s biggest markets.
Similar deals in the past:
Etisalat (UAE-promoted firm) bought 45% stake in Swan Telecom, for Rs 4,050 crore.
In Jun, 08 bought 40.8% of BK modi’s stake in Spice Communications for Rs 2,700 crore(2 circles, 4.5 million or 45 lakh subscribers).
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