Unitech patches up with Telenor, exits Uninor
The war between Telenor and its minority Indian partner Unitech has finally ended with the two companies on Thursday announcing that Unitech Ltd will exit the joint venture company by selling its shares to Telenor.india Updated: Oct 11, 2012 21:45 IST
The war between Telenor and its minority Indian partner Unitech has finally ended with the two companies on Thursday announcing that Unitech Ltd will exit the joint venture company by selling its shares to Telenor.
The two companies have not disclosed the size of the deal. Unitech holds 32.75% stake in the company, the rest is owned by Telenor.
"Unitech has agreed to dispose of its shareholding in Uninor for a nominal amount and Unitech shall continue to retain its economic rights associated with its current shareholding in Unitech Wireless," said a statement issued by both Telenor and Unitech.
"With immediate effect, Unitech Ltd nominees will withdraw from the Uninor Board and all special shareholder rights shall stand suspended. Subsequent to a successful business transfer and spectrum auction, all disputes and claims between the parties shall stand withdrawn/concluded."
The differences between the two partners came out in open when the 2G scam broke out, and escalated after February 2 when the Supreme Court cancelled all 122 licences issued during the regime of former communications minister A Raja on a first-come-first-served basis. These included 22 licences of Uninor.
Later, they a fought legal battle over issues related to corporate governance and infusion of funds in the company. Telenor also decided to shift Uninor's business to a new company with which Telenor wanted to bid for spectrum auctions. This move was opposed by the Unitech.
With Unitech finally exiting, Telenor will be able to participate in the bids. Unitech shares ended at R27.2, up 17.49% on the BSE on Thursday.
First Published: Oct 11, 2012 21:36 IST