NEW DELHI -- Unitech Wireless today announced that it has received the third tranche of fresh equity investment from the Telenor Group. Amounting to INR 1493.26 crores, the investment takes the Telenor Group’s ownership stake in Unitech Wireless from 48.97% to 60.11%. This investment follows the Cabinet Committee on Economic Affairs (CCEA) approval in October 2009 allowing Unitech Wireless to increase foreign shareholding upto 74%As per the agreement between the shareholders, the Telenor Group will inject a total of INR 6120 crores to result in a shareholding of 67.25% in the joint venture company. Of this, INR 4113.46 crores has now been invested and the remaining investment will be completed through a subsequent fourth and final tranche.

“The additional investment will allow Uninor to proceed as per the business plan and successfully expand operations in India. Our shareholders stand confident and committed to the venture,” said Stein-Erik Vellan, Managing Director, Unitech Wireless. “We have recently concluded our first round of service launches in 8 circles with a footprint of 600 million. Early response from customers is encouraging. We are confident of delivering on our stated targets,” said Stein-Erik Vellan, Managing Director, Unitech Wireless.

Uninor aims at achieving EBITDA break-even within 3 years and Operating Cash Flow break-even within 5 years of launch of operations and a market share of 8% by 2018.

“This third investment will as the earlier transactions provide Uninor with working capital to fund the roll out of services across India,” said Sigve Brekke, Executive Vice President and Head of Telenor Group Asian Operations. “Following the successful launch of Uninor services in 8 circles in December 2009, I am confident that Uninor will make a significant impact in the Indian market.”

Uninor

Telenor Group (Nasdaq: TELN)