Uninor, the telecom JV between Norwegian incumbent Telenor and Indian conglomerate Unitech Group, was forced to raise short-term loans abroad in order to meet its day-to-day operational expenses, wrote the Economic Times.
Uninor MD Sigve Brekke was…
Uninor, the telecom JV between Norwegian incumbent Telenor and Indian conglomerate Unitech Group, was forced to raise short-term loans abroad in order to meet its day-to-day operational expenses, wrote the Economic Times.
Uninor MD Sigve Brekke was quoted saying that the 2G scam resulted in a dried up Indian debt market, preventing the company to raise up to Rs90bn (US$2bn).
He also reportedly said that Uninor’s stalled rights issue was another reason for the company to look abroad for financing.
In late April, Telenor reportedly asked an Indian court to lift a stay on a rights issue for Uninor. The company was quoted saying that the rights issue would have been used for funding requirements.
But citing a company statement, reports wrote that Unitech, which holds 32.75% of Uninor, blocked the transaction as not being in the best interests of the shareholders.
Brekke was quoted telling the Economic Times that discussions were being held to resolve the issue, but reportedly added that these funding issues have adversely affected Uninor’s expansion plans.
Uninor has been under fire amid the country’s 2G scandal. In late May, Telenor reportedly asked Sanjay Chandra, the former chairman of its local subsidiary Unitech Wireless (Uninor), to resign from the board following his alleged involvement in the scam.
Telenor was quoted as saying that Chandra, who is currently in judicial custody, had been asked to step down from the board for the duration of the trial. Chandra has already resigned from his role as chairman following pressure from Telenor.
Telenor could not be reached for comment before the press deadline.
In separate news, Uninor is reportedly looking to receive an extra 1.8MHz of 2G spectrum in eight circles, after claiming it has signed up enough subscribers – 27 million – to be allocated new frequencies.
