Telenor has held talks with Idea Cellular for a cashless sale of its Indian unit, according to a report in the Economic Times of India, citing a person familiar with the development. The deal would entail the country’s third-largest mobile phone company taking over all the liabilities Telenor India. Idea Cellular did not respond to an emailed request for comment from the Economic Times, and Telenor said it does not comment on market rumours and speculation.
The two companies have held negotiations for a transfer of all liabilities and assets without any actual payout, the source was cited as saying. Another person said the talks may not lead to a deal, as Idea may not want to add to its debt of over INR 360 billion, after it bought more spectrum in the October auction for almost INR 130 billion.
Telenor India owes close INR 19 billion to the government in deferred spectrum payments and about INR 18 billion in debt to financial institutions as debt, according to the latest available figures, said the Economic Times of India.
