Telenor reportedly plans to consider roping in another partner for its Indian operations, if its existing joint venture partner, Unitech, does not meet its obligations and participate in the upcoming Rs 82 billion rights issue, according to Fredrik Baksaas, president and CEO, the Telenor Group.
Baksaas also said that Unitech was bound to meet its part of the financing for their Indian operations. Telenor holds a majority stake of 67.25 per cent in the joint venture, while Unitech owns the rest.
The Punjab and Haryana High Court recently gave the go-ahead to the company?s rights issue. Prior to that, Unitech had obtained a stay on the rights issue in the Gurgaon district court.
Further, it is believed that the operator had to raise short-term loans of Rs 50 billion, guaranteed by Telenor, to meet its day-to-day operations and fund its ongoing expansion in the country.
Also, the company has said that it plans to invest up to Rs 155 billion in Uninor, its joint venture with Unitech Wireless.
The company expects to generate a four-fold growth in its revenue target to Rs 25 billion from its Indian arm for the fiscal 2011-12, compared to Rs 6 billion registered in the last fiscal.
Moreover, it is believed that the company plans to reduce its capital expenditure by Rs 4 billion in 2011-12, from Rs 12 billion posted in 2010-11.
Also, the operator plans to break even on EBIDTA margins by the first half of 2013 in India.
