Telenor to form new company for India operationsFebruary 21st, 2012 - 11:21 pm ICT by IANS
New Delhi, Feb 21 (IANS) Norway-based Telenor Group Tuesday said it intends to form a new company through which it would carry on its mobile business in India and participate in the upcoming 2G spectrum auction.
“This new entity will serve as the platform to approach the upcoming auctions for fresh licenses as mandated by the Supreme Court,” Telenor said in a statement issued here.
Telenor and its Indian partner Unitech had been at loggerheads even before Supreme Court cancelled 122 spectrum licences issued in 2008, including 22 licences of Uninor.
The group also issued Unitech a notice of voiding the current shareholders’ agreement with Unitech Ltd on “account of fraud and misrepresentation”.
Addressing Unitech, Telenor said: “In order to ensure a smooth transition for Uninor’s employees, customers and stakeholders, we expect that the Uninor Board would, with prior consent from the Indian authorities, transfer Uninor’s business into this new company at a fair market value.”
However the firm confirmed that till the time Uninor’s business is transferred to the new Indian company, Uninor operations will continue as before.
About the new entity, Telenor said it would also seek Foreign Investment Promotion Board (FIPB’s) approval for 74 percent ownership in the joint venture.
Telenor said for more than a year it tried to secure Uninor’s long-term funding needs though a rights offer.
“While this process has been blocked by Unitech, Telenor Group has taken full responsibility for the financial security of Uninor by solely and fully guaranteeing for all short term funding needs.”
The telecom player said it has invested Rs.6,135 crore through equity and over Rs.8,000 crore in debt through corporate guarantees to build Uninor.
It also claimed of a workforce of over 17,500, a distribution network with more than 400,000 points of sale and 40 million customers across the country.
Telenor had earlier announced that it sees no future in a partnership with Unitech, and that it has issued a notice for indemnity, seeking compensation for all investments, guarantees and damages caused by the Supreme Court order.
- Telenor moves company law board to protect India investment - Feb 27, 2012
- Unitech opposes Uninor's proposed rights issue - Jul 25, 2012
- Telenor, Unitech move Company Law Board to protect interests (Lead) - Feb 27, 2012
- Telenor-Unitech case referred to international arbitration - Apr 12, 2012
- Curbs on Uninor sale: Court notice to Unitech - Aug 21, 2012
- Telenor confident of roping in new partner before auction - May 31, 2012
- Company Law Board suggests mediation to Telenor, Unitech - Mar 01, 2012
- Contest Telenor's demand for compensation: Unitech - Feb 16, 2012
- Company Law Board restricts Uninor from auctioning assets - Aug 09, 2012
- Uninor moves Delhi High Court against CLB order - Aug 14, 2012
- Telenor in talks with domestic firms to continue India service - Apr 20, 2012
- Telenor plans Rs.2,000 crore investment in India - Apr 21, 2012
- Telenor denies quoting specific compensation amount - Mar 27, 2012
- Uninor to auction business and assets - Aug 01, 2012
- Telenor's India unit posts $806mn quarterly loss - May 08, 2012
Tags: 2g, crore, distribution network, financial security, fipb, foreign investment promotion board, india operations, indian authorities, indian partner, investment promotion board, loggerheads, misrepresentation, mobile business, rs 8, shareholders agreement, smooth transition, spectrum auction, spectrum licences, telecom player, unitech ltd