Updated : Unitech To Offload 26 Pc To Foreign Partner In Telecom Arm !

[Honest 836]

Unitech to offload 26 pc to foreign partner in telecom arm

27 Jun, 2008, 1936 hrs IST, PTI

NEW DELHI: Country's second largest real estate player Unitech Ltd today said it would dilute 26 per cent stake in its telecom arm to a strategic foreign partner, for which it is in discussion with a few telcos.

"We are looking for a minority dilution of 26 per cent stake to a strategic foreign player in Unitech Wireless," Unitech Ltd Managing Director Sanjay Chandra told reporters.

Unitech was one among the many unified licenses issued by the Department of Telecom earlier this year. Unitech Wireless, which has bagged a pan-India GSM license, has already got the crucial spectrum for five circles and the company is planning to roll out telecom services by the last quarter of the current financial year, he said.

To fund the telecom operations, it is considering to raise debt up to Rs 8,000 crore in the next five years once the company starts services.

"Raising Rs 8,000 crore is the peak amount. Once we finalise the partner and start services, we will look at raising the amount. We will also have vendor financing," Chandra said, adding that at a future date the company would spin off the telecom arm into a separate company.

"Unitech Wireless is currently a subsidiary of the main company, but in the future we will see it as a separate company," Chandra said.

The company would invest the money in purchase of telecom equipment and developing infrastructure, he added.

"Currently, we are talking to three European and two Chinese firms for supplying telecom equipment," he said.

When asked if the company would bid in the auctioning of 3G spectrum, Chandra replied in positive.

[vmsanghrajka 0]

Keenly want to know which foreign partner.. Hopefully some global telecom partner rather than financial partner.. Global telecom partner would ensure global telecom practices viz. Offers, 3G, better CC, etc..

[Honest 836]

Unitech mops up Rs 1,200 crore for telecom venture

9 Sep, 2008, 0310 hrs IST, ET

NEW DELHI : Unitech has raised Rs 1,200 crore for its telecom venture from a syndicate of public sector banks led by Punjab National Bank and Canara Bank. Meanwhile, Norway’s telecom firm Telenor is learnt to have emerged the frontrunner in the race to acquire stake in Unitech Wireless, group’s telecom arm. Unitech is likely to finalise a telecom partner in two weeks.

Unitech MD Sanjay Chandra confirmed that the group has raised debt worth Rs 1,200 crore, but declined a comment on telecom partner. SBI Capital Markets organised the loan from the syndicate, which included Bank of India, Oriental Bank of Commerce, Central Bank of India and Vijaya Bank. PNB and Canara Bank contributed the major chunk of the loan.

Unitech Wireless plans to use the funds to buy telecom equipment for the first phase of its rollout. Unitech Wireless has already initiated the process to procure equipment from global telecom equipment majors ZTE, Huawei, Alcatel-Lucent, Nokia and Ericsson. The company is also looking at sharing infrastructure of the existing telecom players in the country.

Unitech plans to raise a major chunk of initial funds through stake sale. The company is in the process of finalising a European telecom player as its partner. Norway’s Telenor is said to be ahead of its competitors, according to sources close to the development.

Unitech has held talks with a number of international telcos since it began its search for a partner earlier this year. The company shortlisted three players, including Telenor, Telecom Italia and an Asian telco two months ago, and is now veering towards Telenor.

Sources say talks with Telecom Italia fell through after the two parties failed to bridge the gap over valuation. Unitech is expecting a valuation of $3 billion for its start-up, while Telecom Italia was ready for just a billion dollar.

Sources say Unitech is yet to take a final call on Telenor as the two sides are still working on valuation. Another crucial issue, sources say, is the amount of stake being offered to the foreign player.

Unitech has all along insisted that it planned to sell no more than 26% stake in its telecom venture, but potential foreign partners have been asking for a majority stake. A source claimed that Unitech may look at selling even 51% stake, but Unitech denied it.

Unitech, which has pan-India GSM licence and received spectrum to operate in six service areas, had earlier said that it expected to invest Rs 20,000 crore, including debt and equity, in its telecom business over the next three years.

[Honest 836]

Telenor eyes 26% in Unitech arm for $500 m

10 Sep, 2008, 0131 hrs IST, ET

NEW DELHI : Norway's telecom firm Telenor is learnt to be close to picking up a 26% stake in Unitech Wireless, the telecom arm of real estate firm Unitech for around $500 mn.

The likely deal is understood to have valued the start-up at $2 bn, though it is learnt that Unitech is negotiating hard for higher valuation.

Unitech managing director Sanjay Chandra denied having finalised a partner for the business. “We have not closed any deal as yet. We are still negotiating with many parties and are at least a month away from finalising the partner,” Mr Chandra said.

Sources in the telecom industry, however, indicated that Telenor may have already agreed to buy stake in Unitech Wireless. Unitech has held talks with several foreign telcos for a partnership since the beginning of the year.

The company had shortlisted three telecom players including Telenor, Telecom Italia and a South-East Asia-based telecom firm for the last lap of negotiations. The deal with the Asian telco didn’t make much headway, while negotiations with

Telecom Italia reached a dead-end after the European player stuck to a valuation of $1 bn for Unitech Wireless.

Promoters of Unitech, the Chandra family, have been expecting a valuation of $3 bn, but potential foreign partners have been quite stingy on that count.

Moreover, with the Chandra family unlikely to cede control, potential foreign partners saw little reason in supporting a higher valuation. But, sources say, Telenor has now agreed to a $2 bn valuation for Unitech Wireless.

Unitech has obtained licence to operate in all 22 telecom circles and also received spectrum for six circles. The company expects to roll out its services in the first quarter of calendar year 2009. The company had earlier said it expected to invest Rs 20,000 crore in its telecom business over the next three years.

It recently raised Rs 1,200 crore for its telecom venture from a syndicate of public sector banks led by Punjab National Bank and Canara Bank.

Unitech is one of the six new companies that were successful in winning GSM licences earlier this year. The others include Datacom, Loop Telecom, S Tel and Swan. All these companies are scouting for funds and are at various stages of negotiations.

The market meltdown has come as a blow to all of them as they were anticipating much greater valuations than what are being offered now. In the case of Unitech, it has been a bit of a double whammy as it has seen the value of its real estate business erode considerably.

[Honest 836]

Telecom Italia buys 49% in Unitech’s telecom arm

18 Sep, 2008, 0152 hrs IST, ET

NEW DELHI: Telecom Italia has piped Norway’s Telenor to acquire 49% stake in Unitech’s telecom arm. A top Unitech executive confirmed that the two firms are close to reaching an agreement whereby Unitech’s telecom business will be transferred to a new company in which Telecom Italia will invest $2 billion for 49% stake. The majority 51% in the joint venture company will be held by Unitech.

The real estate company’s equity contribution will be in the form of its pan-India licences to operate in all 22 telecom circles and the initial groundwork. Unitech won’t go for any stake sale and the joint venture company will issue fresh shares to Telecom Italia.

The Unitech executive said the Italian company’s funds will be used for laying down the network, rolling out operations as well as bidding for 3G spectrum.

Telecom Italia, which had fallen behind in the race to acquire stake in Unitech’s telecom arm earlier, was able to clinch the deal because it agreed to settle for a minority stake, according the executive. Sources said Unitech was not inclined to give away controlling stake, which Telenor and the Middle East telco Zain were demanding. The real estate company was also not convinced about Zain’s ability to create great value for its telecom business.

Telecom Italia team has been camping in Delhi and has accompanied Unitech executives to meetings with equipment vendors. The executives of the two companies met Nokia officials on Wednesday and are expected to meet HP officials on Thursday.

Unitech has already hired 250 people for its telecom venture and plans to roll out services by April next year. The company has received

spectrum for six circles. The company expects to invest Rs 20,000 crore in its telecom business over the next three years. It recently raised Rs 1,200 crore for its telecom venture from a syndicate of public sector banks led by Punjab National Bank and Canara Bank.

Unitech, which negotiated with several foreign telecom players including AT&T, Etisalat and Altimo, took over six months to finalise an equity partner. Now that a partner is most probably in place, Unitech can speed up its roll out plan.

Telecom Italia, which reported a revenue of 14.8 billion euros in the first half of 2008, had been looking for a foothold in an emerging market like India, which can give its business a big boost.

[Honest 836]

Unitech Wireless deal taking long time to close: Telenor

Moneycontrol l 19 Dec

A Telenor spokesperson has said the closing deal with Unitech Wireless has taken more time than expected, and that the timeline of the deal closure cannot be commented upon, adding that it would close post decisions on tower sharing and IT systems.

Telenor, the spokesperson said, would approach the Foreign Investment Promotion Board (FIPB) only after the deal closes. The deal, the spokesperson added, is not dependant on its USD 2-billion rights issue, a decision on which hasn’t been taken yet. Deautsche Bank would assist Telenor on funding options. The final decision on funding options would be taken post Christmas.

[Honest 836]

Telenor says Unitech Wireless deal delayed till Jan '09

Press Trust of India l 23 Dec l Oslo / New Delhi

Norwegian telecom firm Telenor on Tuesday said it expects to close the transaction with Unitech Wireless, the telecom arm of Indian realty major Unitech, in January next year.

In October, Unitech had said it would sell 60 per cent stake in its telecom venture for about Rs 6,120 crore (about 1.23 billion dollars) to Telenor.

The Norwegian company in a statement today said closing of the Unitech Wireless transaction is expected to occur during January 2009.

Earlier, Telenor had announced that it anticipated to complete the transaction by the end of this year.

The company is also evaluating alternatives to fund the transaction, it said.

"The closing of the transaction is subject to certain conditions being fulfilled. Telenor and its partner, the Unitech Group, anticipate that not all conditions for closing (the deal) will be fulfilled before year-end," the telecom entity said in its statement.

According to the statement, the company's evaluation of alternatives, including the previously announced rights issue of 12 billion Norwegian Kronor (about Rs 8,285.28 crore), is ongoing.

The firm also intends to announce a decision on the "funding of the investment at, or prior to, the closing of the Unitech Wireless transaction".

Unitech was awarded pan-India mobile telecom licence for Rs 1,651 crore early this year and has got GSM spectrum in 13 circles. The company plans to launch services in the first half of 2009.

[Honest 836]

Unitech units get telco spectrum in 4 circles

Economic Times l 29 Dec l Mumbai

Indian real estate firm Unitech Ltd said on Monday its telecom subsidiaries had got wireless radio waves in four more service areas, taking the total to 20 where it holds spectrum.

Unitech, which has agreed to sell a 60 per cent stake in the telecom business to Norway's Telenor, said in a notice to the stock exchange the allotment had been made for Assam, Rajasthan, North East and Jammu & Kashmir service areas.

Indian telecoms market comprises of 22 service areas.

[Arun 795]

Telenor's presentation to its investors on entering India by taking a majority stake in Unitech Wireless: Download

[ravi_patent 28]

in the presentation telenor was emphatic abt a point

"2 operators on CDMA, expected

to be converted to GSM "

i am doubtfull

[ravi_patent 28]

Telenor entering India: Investment plans

http://www.telenor.com/en/resources/images...tcm28-37393.pdf

(p22 gives details of call termination charges in India)

[savramesh 37]

Unitech Wireless gets NLD, ILD licences

Source

NEW DELHI: Unitech Wireless, a part of the realty major Unitech Group with a pan-India mobile licence, has got both National and International Long Distance Licences.

A Department of Telecom official said the company has got NLD, ILD licences.

The company is planning to start the GSM-based mobile service in the last quarter of the current calendar, a Unitech official said.

With NLD and ILD licences the company will be able to provide cost-effective STD and ISD services to its customers from day one of the launch.

The new licences will help the company save on traffic carriage expenses as it will be carrying its own traffic in NLD and ILD segments.

All the big telecom players have their own NLD, ILD licences.

Meanwhile, the Government has deferred its decision on a proposal to increase Unitech Ltd's foreign shareholding in Norway telco Telenor to up to 74 per cent.

Telenor had agreed to buy about 67 per cent of Unitech Wireless but the transaction needs government approval.

Foreign Investment Promotion Board is learnt to have held up the proposal over Home Ministry's concerns over security issues. As Telenor has a presence in both Pakistan and Bangladesh the board had asked for more time to study the proposal.

However, the Department of Telecom has give a no objection certificate to the proposal.

Unitech Wireless has licences to provide telecom services in all of the country's 22 telecom circles, but is yet to start operations.

Telenor bought a 67.25 per cent majority stake from Delhi-based real estate group Unitech in two tranches. It has already completed acquisition of 49 per cent in the company.