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Thursday, April 19, 2018

Unitech to exit JV with Telenor,sell entire stake

Norwegian telecom operator Telenor and Indian real estate firm Unitech on Thursday agreed to settle their disputes amicably by withdrawing all the cases slapped against each other

Written by ENS Economic Bureau | Mumbai | Published: October 12, 2012 12:45:04 am

Norwegian telecom operator Telenor and Indian real estate firm Unitech on Thursday agreed to settle their disputes amicably by withdrawing all the cases slapped against each other. The development brings to an end the long-drawn dispute between the two since the Supreme Court cancelled their JV firm Uninor’s 22 licences in its February 2 order.

Under the terms of agreement while Unitech,which holds 32.75 per cent,will exit the JV upon receiving payment of a nominal amount,Telenor would be able to transfer all assets of Uninor to a new company and bid in the upcoming 2G spectrum auction.

Telenor would be free to get a new Indian partner to meet the mandatory 26 per cent stake by an Indian firm in a telecom services company.

However,Unitech would continue to retain economic rights in the company as per its current shareholding. This means that if any benefits accrue to the firm in terms of refund of licence fees of taxes,Unitech would be entitled to them as per its shareholding.

The two parties also informed the Delhi High Court on Thursday that they have resolved their disputes amicably.

With immediate effect,Unitech would withdraw all its nominees from Uninor’s board and all its special shareholder rights will stand suspended.

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