New Delhi, Oct 11 (PTI): Realty major Unitech on Thursday said it will exit from the telecom joint venture with Telenor by selling its entire 32.75 per cent stake to the Norwegian firm.
Telenor, which held 67.25 per cent stake in the Joint Venture firm Unitech Wireless that runs under Uninor brand name, said in a separate statement that it is preparing to participate in the upcoming 2G spectrum auction through a new entity.
Telenor and Unitech had been at loggerheads ever since the Supreme Court in February cancelled Uninor's 22 telecom permits. Telenor wanted to scrap the JV and transfer the business to a new firm and get fresh license. Both were engaged in legal battle in courts and the Company Law Board.
“Telenor and Unitech are pleased to announce that on October 10, 2012, they have reached an agreement to amicably settle all disputes between the two parties,” the two firms said in a separate but almost identical statements. Unitech and Telenor said they have agreed to transfer the business in Uninor to a new entity controlled by the latter. “Unitech has agreed to dispose of its shareholding in Uninor for a nominal amount,” it added. They, however, did not disclose the amount Unitech is getting for exiting Uninor.
Unitech said its nominees will withdraw from the Uninor Board with immediate effect.
“Subsequent to a successful business transfer and spectrum auction, all disputes and claims between the parties would be withdrawn,” Unitech said. The realty firm, however, said the company would continue to retain its “economic rights” associated with its current shareholding in Uninor. With the settlement of disputes with Telenor, Unitech will focus on its core business of real estate.
“We are pleased with the settlement reached between Unitech and Telenor.All existing disputes with Telenor are suspended and will be withdrawn upon successful transfer of business of Uninor to a new entity controlled by Telenor,” Unitech Chairman Ramesh Chandra said.