The Tata group and Norway-based Telenor Group are reportedly in advanced talks for merging their wireless telephony operations in India. In the merged entity, Tata group will own a minority stake while Telenor will have a majority stake. Both companies are awaiting introduction of the final merger and acquisition norms, which the government is expected to issue after the ongoing telecom spectrum auction.
The Tata group has invested Rs 260 billion in Tata Teleservices Limited?s and the company currently has debt of Rs 240 billion. The Tata group has sought the government?s permission to buy back NTT DOCOMO?s 26.5 per cent stake in TTSL for Rs 72 billion, at Rs 58 a share. Currently, the issue of the buyback is pending with the finance ministry. TTSL, along with its listed associate Tata Teleservices (Maharashtra), provides CDMA technology services across 19 telecom services and GSM services in 18 circles. It has launched 3G services in nine circles.
Meanwhile, Telenor?s Indian subsidiary Telewings Communications operates under the brand name ?Uninor? in India. The company has licences for mobile services in seven of the 22 telecom service areas and it operates across six circles – Andhra Pradesh, Bihar, Gujarat, Maharashtra, Uttar Pradesh (East) and Uttar Pradesh (West).
