After taking a battering in its share price, India’s second larget real estate players, Unitech has sold off 60% stake via fresh share issue in Unitech Wireless to Norwegian company, Telenor for Rs.6120 crore valuing the company at Rs.10200 crore.
The development has come at a much needed time for Unitech as it badly needs liquidity for real estate business and especially with all the bad news pouring in.
Telenor already is the second largest non-Asian telecom operator after Vodafone and has operations in Pakistan and Bangladesh.
Unitech Wireless makes a good fit for Telenor as the former has a pan-India telecom licence and slated to begin service in early 2009.
Regarding valuations, the valuation may be on a higher as Idea Cellular which is among the first entrants in the Indian telecom market has a valuation of close to Rs. 12000 crores. Even the recent Swan Telecom-Etisalat deal valued Swan at over Rs.10000 crore.
But given the expectations for Indian telecom market, it may turn out to be a good bargain for Telenor.
Find this article at: http://www.labnol.org/india/corporate/unitech-sells-stake-in-telecom-arm-reasonable-valuations-in-competitive-market/5122/
Tags: deal, idea cellular, mobile, real estate, telecom, Corporate, India
Reader Comments
Now I thing govt should not approve this deal because it will be a heavy loss on part of govt and is in public interest.
Written by Management Guru on 11.06.08
Unitech, India’s second largest listed real estate company, is looking at restructuring a Rs 800-crore loan from public sector banks, as it attempts to save itself from sinking under the huge debt burden. The company is pinning its hopes on debt restructuring, asset and stake sales to private equity (PE) funds to pay a debt of Rs 2,500 crore, which is due by March ’09.
Written by Vikas on 04.15.09