Tuesday, January 27, 2009

Telenor will fund Indian deal via cash and new debt.

TELENOR ASA, the largest phone company in Norway, said it will fund its Indian acquisition via short-term borrowings and cash, trashed the idea of raising new shares.

The company said it had signed an 8 billion Norwegian crown (US$1.19 billion) 3-year loan that can be used to fund the Unitech Wireless deal.

The announcement addressed investors concern on earnings dilution.

However, the company said on Tuesday it would propose no dividend payout for 2008 and 2009.

The deal is expected to be finalised by end of first quarter this year.

In October last year, the company announced its plan to buy 60 per cent stake in Unitech Wireless for US$1.1 billion.

http://www.reuters.com/article/rbssWirelessTelecommunicationServices/idUSLR2362020090127

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