Norwegian telecom Telenor's partner in India, Unitech , said Telenor has no authority to cancel their shareholder agreement and set up a new company to carry on their Uninor joint venture, as the Norwegian company said it intends.
"We would like to clarify that the shareholders' agreement cannot be terminated by any party unilaterally," Unitech said in a statement, adding that the agreement contains non-compete provisions that Telenor's announced move would violate.
"It is shocking that Telenor intends to transfer the entire business to a new affiliated entity owned by itself," Unitech said, promising legal action to defend it interests.
"This not only shows complete disregard and oppression of the minority shareholder by Telenor, but is also against all principles of related party transactions."
Unitech stock price
On November 24, 2015, Unitech closed at Rs 7.12, up Rs 0.01, or 0.14 percent. The 52-week high of the share was Rs 22.75 and the 52-week low was Rs 5.40.
The latest book value of the company is Rs 37.66 per share. At current value, the price-to-book value of the company was 0.19.
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