Finally, the deal is done and Unitech is selling 60% stake to Telenor for $1.07 billion (valuation of 1.78bn$). The earlier deal was rumored at $500mn for 26% stake - and that means a drop of $10mn in valuation.
Unitech holds licences through its subsidiaries to provide telecom services in all of India’s 22 service areas and has radio spectrum in 12 of them (source)
Unitech’s real estate business is in serious need for liquidity and that could be the reason for increasing stake sale from 26% to 60%.
Snaphots from Indian Telecom Industry
- 30% of New Mobile Users from Rural India
- 10 mn mobile users added in September
- Tata Teleservices to sell 26% stake to NTT DoCoMo?
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You meant drop of 10 million…
Yep! Sorry – that was a typo.
Have rectified it. Thanks for that.
this is front page news with a heading “Rs. 40,000 crore scam. Govt. sells cheap spectrum. Unitech hits the Jackpot.” But ET has written an editorial on page 16 which is not good.
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