Unitech settles disputes with Telenor; to sell entire Uninor stake

“It can be confirmed that the parties agree to support the transfer of the business in Unitech Wireless (Uninor) to a new entity (NewCo) controlled by Telenor. Unitech has agreed to dispose of its shareholding in Uninor for a nominal amount and Unitech shall continue to retain its economic rights associated with its current shareholding in Unitech Wireless,’’ said a statement. The companies did not reveal the terms of the settlement.

Unitech shares zoom 6%

Unitech shares rose 6.05 per cent to Rs 24.55 at 11.35 a.m. on the BSE. With immediate effect, Unitech Ltd nominees will withdraw from the Uninor board and all special shareholder rights shall stand suspended. Subsequent to a successful business transfer and spectrum auction, all disputes and claims between the parties shall stand withdrawn/concluded.

Focus on real estate business

“With the settlement of disputes with Telenor, Unitech Group will be able to have more focus and management bandwidth to further its core business of real estate and monetisation of its land parcels across the country so as to enhance the stakeholder’s value,’’ Unitech said.

The two companies have been at loggerheads over the past two years over a number of issues prompting the foreign partner to float another venture. Telenor was in talks with a number of other Indian players for the new venture. The company is expected to participate in the upcoming spectrum auction under this new venture.

Check latest news on the go with your mobile device