Telenor dumps Unitech; to form new Indian venture

90424 Investors following Unitech. Share this News with them.

0

Like this story, share it with millions of investors on M3

Telenor dumps Unitech; to form new Indian venture

Virtually dumping its partner Unitech, Norwegian telecom major Telenor Group today announced plans to set up a new company for carrying out its Indian operations post Supreme Court quashing its 22 licenses.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ See latest News about Unitech See previous management interviews See what other Experts & Brokerages are saying about Unitech

Virtually dumping its partner Unitech , Norwegian telecom major Telenor Group today announced plans to set up a new company for carrying out its Indian operations post Supreme Court quashing its 22 licenses.

Telenor also sought damages from Unitech accusing it of "fraud and misrepresentation" of facts based on which it had invested over Rs 6,000 crore in the joint venture with the real estate firm.

"Telenor Group has issued to Unitech a notice of voidance of the current shareholders' agreement with Unitech on account of fraud and misrepresentation on their part as established by the Supreme Court judgement," Telenor Group Director Communications (Asia) Glenn Mandelid said in a statement.

The Norweigan firm wants to transfer the business that was being done under the Uninor brand to the new company, where it will hold 74 per cent stake and may rope in a minority Indian partner. Expressing shock at Telenor's announcement, Unitech in a statement said, it "cannot be held responsible" for cancellation of licenses and shareholders agreement "cannot be terminated by any party unilaterally".

Telenor said the new entity will serve as the platform to approach the upcoming auctions for fresh licenses as mandated by the Supreme Court.

"As a part of this process, the new entity will also seek requisite approvals from the FIPB to allow Telenor Group to take up 74% ownership," Mandelid said. Telenor will seek to transfer Uninor's business, and seamlessly migrate its customers and employees, to the new company, Mandelid added. "Till such a time, Uninor operations continue as before," he added.