Telenor may sell its India unit to Idea in a cashless sale

Telenor and Idea Cellular have held talks for a cashless sale of Telenor India’s unit to the latter.

"The two companies have held negotiations for a transfer of all liabilities and assets without an actual payout,” a person familiar with the development told ET.

As per reports, Idea is likely to cancel the deal as it does not want to burden itself with debt of over Rs 36,000 crore as it already bought additional spectrum in the October auction for almost Rs 13,000 crore.

Telenor India owes around Rs 1,900 crore to the government in deferred spectrum payments and about Rs 1,800 crore to financial institutions as debt.

However, if Idea buys Telenor, it would help Idea gain 4G spectrum in the 1800 MHz band, especially in some key circles.

UP West, Gujarat and Maharashtra are three of Telenor's seven circles in which Idea is ranked first or second. Telenor has spectrum in UP West, UP East, Bihar & Jharkhand, Maharashtra, Andhra Pradesh, Assam and Gujarat.