Telenor teams up with Lakshdeep Investments for 2G auction

Norway's Telenor will bring Lakshdeep Investments & Finance Pvt. Ltd into its new Indian Telewings venture to bid jointly for new mobile telephone licenses, Telenor said on Friday.

Lakshdeep, a company controlled by Sudhir Valia, will contribute an undisclosed amount of equity into the new Telewings joint venture, in which Telenor will hold a 74 percent stake, Telenor added. Sudhir Valia, brother in law of Dilip Shanghvi, has bought 26 percent in the JV.

Earlier today, media reports said Sun Pharma promoter group is picking up a 26% stake in a new JV with Telenor, in a personal capacity.

[caption id="attachment_503809" align="alignleft" width="380"] The Sun Pharma link exists. Reuters[/caption]

Lakshdeep replaces Unitech as Telenor's Indian partner after authorities cancelled their Uninor venture's licenses granted in a corruption-tainted 2008 licensing round.

Telenor has already submitted an application for prequalification in the upcoming auction as it aims to stay in the country despite being stripped of its permits.

More from Business

The Supreme Court cancelled 122 regional operating permits held by eight carriers earlier this year, forcing operators to reapply for their permits.

Friday's deal makes it possible for Telenor to take part in next month's auction of Indian mobile telephone spectrum as local rules allow a maximum 74 percent shareholding by foreign companies in telecom carriers. Telenor Group will maintain operational control and upon necessary approvals all assets of Unitech Wireless (Uninor) will be transferred to this company for seamless continuity of operations.

"A final decision on whether to participate or not will be made before the auction starts," Telenor said.

"These are people who enable international ownership," said Espen Torgersen, analyst at Carnegie. "I expect that the risk for the financial investor to be very much reduced, and probably also the upside."

Agencies