Telenor Executive, Norway Minister Meet India Minister Over License Cancellation
February 07 2012 - 2:33AM
Dow Jones News
Telenor ASA's (TEL.OS) Asian business head said Tuesday he met
India's communications minister, Kapil Sibal, and sought protection
of the company's investments in the country after the Supreme Court
last week ordered cancellation of the licenses of its local unit
and several other companies.
"We are talking to the (Indian) government because we need to
protect our investment," Sigve Brekke, also the Norwegian company's
executive vice president, told reporters. "And, we also need to
make sure that there is a framework for continuing our
business."
He didn't elaborate further on the discussions.
Norway's information technology minister, Rigmor Aasrud, also
separately discussed the Telenor issue with Sibal Tuesday. She
described the meeting as "constructive" and "fruitful."
India's Supreme Court last week ordered the cancellation of 122
telecom licenses--including 22 held by Unitech Wireless, Telenor's
joint venture with local real-estate company Unitech Ltd. The order
will become effective after four months.
Telenor entered India by acquiring a 67.3% stake in Unitech
Wireless from Unitech in 2008 for about INR61 billion ($1.25
billion). It has so far provided more than INR80 billion in
corporate guarantees to the unit, making it India's second-largest
foreign investor in the telecom sector, after Vodafone Group
PLC.
Unitech Wireless currently has about 40 million users and
provides services under the Uninor brand.
-By Prasanta Sahu, Dow Jones Newswires; +91-9967586928;
romit.guha@dowjones.com
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