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Telenor (OSL:TEL) (Fornebu, 29 October 2008) Telenor has entered into a definitive agreement to subscribe to new shares in Unitech Wireless for a consideration equivalent to USD 1,070 million. Subject to regulatory approvals, Telenor will hold a 60% controlling stake in Unitech Wireless.
"Gaining access to the world's second largest mobile market is a major achievement for Telenor. Entering the Indian mobile market gives Telenor a unique possibility to further enhance the Telenor Group's position as one of the leading emerging markets operators, and enables us to take part in the development and growth opportunities in one of the fastest growing telecom market in the world," said Jon Fredrik Baksaas, President and CEO of Telenor.
Unitech Wireless has pan-Indian telecommunications licences in all 22 telecom circles, and plans to launch its services in mid 2009. The company was established in 2007 and has already recruited more than 250 employees. The Indian market presents a large attractive opportunity to telecom operators. With a population of approximately 1.2 billion, and a mobile penetration currently at 26%, there remains significant untapped potential of additional subscribers. India is already witnessing a significant increase in mobile penetration with a net addition of approximately 8 million subscribers per month during 2008.
"India enjoys a forward looking telecom regulation and an investment friendly climate. By combining Unitech's strong presence as a trusted corporation in the Indian market with Telenor's successful experience at building and managing best in class mobile operations in Asia, we will together contribute to growing the industry and developing the mobile market in India," said Baksaas.
"We highly appreciate this partnership with Telenor, and believe that Unitech Group's local position and strengths coupled with Telenor's technical, operational and marketing expertise will form a winning team. Telenor's experience from growth markets in Asia are also a great benefit for the partnership," said Sanjay Chandra, Managing Director, Unitech Ltd.
The initial equity injection in Unitech Wireless will be made by Telenor Asia Pte. Ltd. in four tranches to be completed before the end of September 2009. The investment will be funded through draw-down on existing credit facilities and/or issuance of short-term commercial paper. Telenor intends to secure funding by raising approximately NOK 12 billion through a rights issue in Q1 2009. The Norwegian Government has stated its willingness, under certain conditions, to put forward a parliamentary proposition to participate for it's pro rata share of the rights issue.
For further information, please contact: Media: Esben Tuman, Vice President Communications, Telenor Asia, Phone: +66 859 184 111, E-mail: esben.tuman@telenor.com
Investors/analysts: Marianne Moe, Head of Investor Relations, Phone: +47 67 89 26 56 or +47 91 61 76 31 Dag Eide, Investor Relations, Phone: +47 67 89 39 53 or +47 45 80 50 50 Kristine Jensen, Investor Relations, Phone: + 47 67 89 27 15 or +47 90 60 46 88
To the editorial offices:
Press and analyst conference In connection with the investment in India and the publication of the third quarter financial results, a press and analyst conference will be held on Wednesday 29 October at 09:00 hrs Norwegian time/CET. The presentation will be held in Auditorium A, Telenor Expo Visitors' Centre, at the Telenor Headquarters at Fornebu outside Oslo. President and CEO Jon Fredrik Baksaas and CFO Trond Westlie will conduct the presentations. All presentations will be given in English.
Internet and mobile broadcast The press and analyst conference will be broadcast live over the Internet, and a recorded version will be made available on www.telenor.com/ir/reports/08q3. During the live transmission, written questions may be submitted via the Internet. The conference will also be available live, and in a recorded version, on mobile phones with 3G, GPRS or EDGE. For more details please refer to www.telenor.com/ir/reports/08q3.
Conference call and Q&A The press and analyst conference will also be available as a conference call. This service also allows participants to ask questions at a concluding Q&A session, which will be held immediately after the presentation and a brief Q&A session in the auditorium. Please register well in advance on (+47) 800 80 119 (from Norway) or (+47) 23 00 04 00 (from Norway or abroad).
Materials English language versions of the presentation used during the press and analyst conference will be made available on www.telenor.com/ir/presentations/ just before 09:00 hrs Norwegian time/CET.
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
