Domestic realty firm Unitech on Thursday has agreed to sell its 32.75 percent share in Uninor wireless to their partner Telenor, after both parties agreed to settle the a year long disputes.
Telenor wanted to end the joint venture with Unitech and transfer its assets from Uninor to a new company which will participate in the coming spectrum auction slated to commence from November 12.
“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,” said Unitech in a statement.
Both company have agreed to transfer the business in Unitech Wireless to a new company controlled by later, according to the agreement.
Unitech said it has “agreed to dispose of its shareholding in Uninor for a nominal amount” and 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to a successful business transfer and spectrum auction, all disputes and claims between the parties would be withdrawn,” said the statement.
“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 All existing disputes with Telenor are suspended and will be withdrawn upon successful transfer of business of Uninor to a new entity controlled by Telenor,” said Ramesh Chandra , Unitech Chairman.
Unitech and Telenor had filed cases against each other in courts and Company Law Board. In the JV, Telenor has 67.25 per cent stake, while Unitech’s shareholding is 32.75 per cent.
The Supreme Court by its February 2, 2012, order had cancelled all the 122 licenses that were granted by ex- telecom minister A. Raja on first-come-first-come basis.10th Jan 2008, and Telenor had blamed Unitech for the licence cancellation.
Besides, the statement said that the Unitech nominees will step down from the Uninor Board. “With immediate effect, Unitech Ltd. nominees will withdraw from the Uninor Board and all special shareholder rights stands suspended,” the statement added.