Unitech opposes Uninor’s proposed rights issue

July 25th, 2012 - 10:37 pm ICT by IANS  

New Delhi, July 25 (IANS) India-based Unitech has opposed its telecom partner Telenor’s proposal to raise Rs.1,200 crore through a rights issue for meeting operational expenses.

The company has claimed that Uninor, its joint venture with Norway-based Telenor, has approached the Foreign Investment Promotion Board (FIPB) without approval of its board nominees.

“The issue of rights issue was not even an agenda item in the meeting dated May 23, 2012. There was only some discussion on the rights issue,” Unitech said in its letter to FIPB Wednesday.

“No decision was or could have been made, especially since the proposed rights issue is a matter of arbitration between the shareholders.”

Unitech holds 32.75 percent stake in Uninor.

In response, Telenor in a statement said that it was “unfortunate” to note the misrepresentations being made with reference to the FIPB process initiated by Uninor.

“With the relevant authorities, Uninor will meet these distortions point by point with facts. We would also like to state that it is disappointing, though not surprising, to see such attempts at obstruction at a time when both shareholders should infact be focused on securing Uninor’s immediate funding and long term future.”

“Telenor Group remains committed towards its operations in India and will continue to pursue every measure available to safeguard their future.”

Telenor has declared that 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.

The two companies have been at the loggerheads ever since serious differences arose over the valuation of the company. Thereafter, earlier this year, the Supreme Court ordered cancellation of 122 telecom licences including the licences of Uninor, which added fuel to fire.

Unitech has alleged that the proposal of the rights issue is an attempt by Telenor to introduce a new partner in an indirect manner.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |