Realty firm Unitech is believed to have agreed to sell its around 33 per cent stake in telecom company Uninor to its joint venture partner Telenor.

Unitech has consented to sell its stake during Company Law Board hearing on Monday, according to sources. They added that Unitech has given various proposals regarding its stake sale and negotiations are on between the two companies.

Unitech's consent to exit is subject to Telenor's acceptance of its proposal.

The joint venture partners have been at loggerheads over a slew of issues. The differences between them reached a flash point after the Supreme Court in February cancelled 122 licences, including 22 held by Uninor.

Holding the Indian partner responsible for the breach of warranties related to the cancellation of the licenses, the Norwegian firm wanted to dump its partner, Unitech after the Supreme Court verdict.

While Telenor had requested for the "exclusion" and "removal" of Unitech MD Sanjay Chandra and his two other nominees from the "management and administrative affairs of Uninor", Unitech had asked for maintaining the status quo of Uninor, and not allowing transfer of its assets to any other company without its consent.

The warring partners have since then moved the CLB which is hearing cross-petitions filed by them.

On March 13, the CLB had asked Unitech to decide whether the realty firm wants to buy Telenor's stake in Uninor or sell its stake to the Norwegian telecom firm.

On Monday, the parties exchanged proposals inside the closed chambers of the Company Law Board Chairman. Company Law Board Chairman Justice B R Deshmukh on the request of Unitech has ordered proceedings of the case to be held in-camera.

Telenor holds the remaining 67 per cent stake in Uninor.
Read more
Reply
7 Replies
Sort by :Filter by :
  • How do you see this affecting Unitech financially? Good or Bad?

    Originally Posted by amit001
    Realty firm Unitech is believed to have agreed to sell its around 33 per cent stake in telecom company Uninor to its joint venture partner Telenor.

    Unitech has consented to sell its stake during Company Law Board hearing on Monday, according to sources. They added that Unitech has given various proposals regarding its stake sale and negotiations are on between the two companies.

    Unitech's consent to exit is subject to Telenor's acceptance of its proposal.

    The joint venture partners have been at loggerheads over a slew of issues. The differences between them reached a flash point after the Supreme Court in February cancelled 122 licences, including 22 held by Uninor.

    Holding the Indian partner responsible for the breach of warranties related to the cancellation of the licenses, the Norwegian firm wanted to dump its partner, Unitech after the Supreme Court verdict.

    While Telenor had requested for the "exclusion" and "removal" of Unitech MD Sanjay Chandra and his two other nominees from the "management and administrative affairs of Uninor", Unitech had asked for maintaining the status quo of Uninor, and not allowing transfer of its assets to any other company without its consent.

    The warring partners have since then moved the CLB which is hearing cross-petitions filed by them.

    On March 13, the CLB had asked Unitech to decide whether the realty firm wants to buy Telenor's stake in Uninor or sell its stake to the Norwegian telecom firm.

    On Monday, the parties exchanged proposals inside the closed chambers of the Company Law Board Chairman. Company Law Board Chairman Justice B R Deshmukh on the request of Unitech has ordered proceedings of the case to be held in-camera.

    Telenor holds the remaining 67 per cent stake in Uninor.
    CommentQuote
  • Sir- have u ever heard That anything bad can happen to any builder?

    When they bought new licenses it was - good- horizontal diversification
    When they sold off equity to Telenor - good - monetization
    When they have been indicted and have to sell off - good- will now focus on core

    Everything is always good for builders. Only the buyers get screwed.
    CommentQuote
  • Originally Posted by Magadh_Pride
    Sir- have u ever heard That anything bad can happen to any builder?

    When they bought new licenses it was - good- horizontal diversification
    When they sold off equity to Telenor - good - monetization
    When they have been indicted and have to sell off - good- will now focus on core

    Everything is always good for builders. Only the buyers get screwed.


    ha ha...good one
    CommentQuote
  • This is a new thread or what ??? There was a similar thread & i had made some posts there .

    This is confusing:bab (38):.
    CommentQuote
  • Originally Posted by Magadh_Pride
    Sir- have u ever heard That anything bad can happen to any builder?

    When they bought new licenses it was - good- horizontal diversification
    When they sold off equity to Telenor - good - monetization
    When they have been indicted and have to sell off - good- will now focus on core

    Everything is always good for builders. Only the buyers get screwed.


    You said it right mate !!! We are trained to look positive in any situation :)
    CommentQuote
  • Unitech demands $150 million from Telenor to exit joint venture

    NEW DELHI: Realty firm Unitech has sought about $150 million from Norway's Telenor to sell its 32.7% stake in their telecom joint venture and end the bitter dispute between two partners, an executive with direct knowledge of the development told ET. Unitech is learnt to have made this proposal to the Company Law Board, after the quasi-judicial body had asked the realty firm to decide by March 19 if it wanted to buy out the 67.25% stake held by Norway's Telenor or exit their joint venture.

    The realty firm's offer takes into account that it invested about $125 million as equity into its Unitech Wireless and spent another $25 million in the initial phase before divesting a majority stake in its phone arm to Telenor. The CLB will hear the issue again on Friday. The Unitech spokesperson refused to comment.

    "Both parties have been asked by the CLB not to comment on the proceedings that took place within closed chambers. On our part, we will respect the directions of the CLB. What we have earlier stated it is that the partnership with Unitech is over, and it is our intention to form a new company to which Uninor's assets can be transferred. This company will form the platform with which we will approach the upcoming auction," the Telenor spokesperson said in his reply to an ET query.


    Last month, Telenor's CEO Jon Fredrik Baksaas had told ET that the Norwegian telecom major was not interested in buying out the minority stake held by its estranged partner and wanted to make a fresh start with a new partner. He had also dismissed any possible deal with Unitech and said: "Without spectrum, there is nothing to buy. Everyone will be willing to be bought out if the price is sufficient. But after the licences were revoked, the JV no longer exists."

    Telenor's Indian operation, with about 40 million customers, was one of the worst affected by the Supreme Court's February 2 orders to cancel 122 licences issued in 2008. Following the apex court's decision, the ongoing differences between both partners over raising funds for their JV took a new twist, with Telenor serving Unitech a divorce notice and also seeking compensation from its Indian partner for damages. The Norwegian telecom major also announced that was forming a new company in India and plans to migrate its existing business, including customers and employees, to this entity.

    Executives aware of the development said that Unitech's latest offer was subject to several conditions. First, the realty firm will have to be exempted from any liability that Unitech Wireless faces in the future. Telenor must also bear total responsibility for the Rs 8,500-crore debt on the books of their JV and must withdraw legal proceedings seeking compensation from Unitech for all its investments, guarantees and damages caused by the apex court's decision. In return, Unitech will drop its objections to Telenor shifting its businesses and customers to a new company, executives aware of the development added.

    Industry executives share the opinion that the final settlement amount could be much lower than the $150 million being demanded by Unitech. In January, Telenor had valued its Indian operations at around $120 million (Rs 600 crore) while the Unitech insisted that the JV is worth at least 20 times more, around Rs 11,000-12,000 crore. Telenor's estimation of the value of its Indian unit is less than 7% of what it was in 2009 when it picked up 67.25% stake for Rs 6,100 crore, a deal that valued a company that had not launched operations or acquired a single customer at about Rs 9,000 crore.
    CommentQuote
  • CommentQuote