Telenor has dissolved its JV with Unitech but still plans to enter India’s 2G auction, the Norwegian telco announced today.
As TelecomFinance previously reported, Telenor and real estate company Unitech had a bitter dispute over management which…
Telenor has dissolved its JV with Unitech but still plans to enter India’s 2G auction, the Norwegian telco announced today.
As TelecomFinance previously reported, Telenor and real estate company Unitech had a bitter dispute over management which resulted in the telco wishing to dissolve the Uninor partnership.
Telenor is now creating a new company through which it can bid for 2G licences. “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,” the company said in a statement. “Telenor is preparing to participate in the upcoming 2G spectrum auction through this new entity, but will take a final decision on whether to participate at a later date.”
Unitech said it has agreed to sell its stake in the JV for a “nominal amount” in a statement to the Indian stock exchange today.
Foreign companies have not been allowed to bid in the 2G auction, prompting a number of international telcos to embark on JVs with local entities. However, a ministerial panel recently approved a proposal for foreign companies to participate without a local partner.
Telenor first announced in February that it would look for a new strategic partner in India after the country’s Supreme Court ordered the cancellation of 122 2G licences, including 22 belonging to Uninor. The joint venture partners have since filed numerous claims in relation to the dispute in various legal forums.
