Unitech - Update On Unitech-Telenor Deal - Dec 26, 2008

With reference to earlier annoucement dated October 29, 2008, Unitech Ltd has now informed that the telecom deal with Telenor is expected to close in January 2009 instead of December 2008. The closing of the transaction is subject to certain conditions being fulfilled. Unitech Group and its partner, Telenor, anticipate that not all conditions for closing will be fulfilled before December 2008. Both the parties thus expect to close the transaction during January 2009.

Further the Company has informed BST that the Company signed a binding agreement with Telenor on October 28, 2008 and are now completing all the formalities. Both the parties have made significant progress on the transaction. During this period, the Company have also made a lot of progress on various launch related activities, e.g. network order placement, tower sharing, recruiting and acquisition of offices/facilities in circles amongst many other things.

Unitech Enters Into JV With Ruby Mills

Real estate companies may be having a tough time in the capital markets but that is not stopping them from building their businesses on ground. Unitech has entered into a joint venture with Ruby Mills, owned by Bharat Shah. Just behind Raj Thakeray''s Kohinoor Mills is another piece of land. Not as visible and tucked away off the main road, Ruby Mills is a five acre property in Mumbai''s Dadar which was recently valued at Rs 400 crore and it now seems to be on Unitech''s radar.

Sources said that Unitech has entered into a joint venture with Ruby Mills, owned by Bharat Shah and the deal is likely to be a profit sharing agreement with Unitech making no payment up front. It, however, will bear the costs of development.Ruby Mills'' owner Bharat Shah was unavailable for comment but sources close to the development said that the deal is close to being sealed. For Unitech, this is access to prime land and for Ruby Mills, it lends itself credibility. In the recent past, other mills in the area have also been snapped up in large deals fetching huge premiums as seen with NTC''s mill land.

Unitech To Divest To 50pc Stake To Telecom Ally

New Delhi: Unitech, which has purchased licences to offer telecom services in 22 circles in the country, will sell 10-50 per cent stake to a foreign company in its telecom services operations. The company is in negotiations with various foreign players for an equity alliance for the same. A lot of foreign companies already have alliances with Indian companies for various operations. As per existing norms, foreign direct investment of up to 74 per cent is allowed in telecom services. The company is yet to start negotiations with telecom equipment manufacturers though the official confirmed receiving queries from vendors. Unitech, which had applied for 22 circles via seven different companies, is among the nine new entrants that took the licences on Jan 10.