Telenor has decided to fund its investment in Unitech Wireless in India through a combination of cash flow and issuance of additional debt.
As a result of this Telenor withdraws the previously proposed rights issue of NOK 12 billion.
Telenor has decided to propose that there will be no payment of dividend to shareholders for 2008. Furthermore, it is Telenor’s intention that no dividend will be proposed for 2009. A final decision on dividend proposal for 2009 will be made after closing of the financial accounts for 2009.
Telenor has signed a NOK 8 billion three-year term loan, which may be used to finance the investment in Unitech Wireless. Closing of the Indian transaction is subject to certain conditions being fulfilled, and as communicated on 23 January 2009 Telenor anticipates that this will take place during the first quarter of 2009. Telenor remains confident that all conditions will be met within the indicated timeframe.
For further information please contact:
Pål Kvalheim, Vice President Communication, Telenor Group
Phone: +47 970 44 970