Telenor to create new business entity in India
22 February 2012
Norway's Telenor, Europe's third-largest telecom company, says it is setting up a new entity in India to which it would transfer its business - employees and customers.
This would practically end its relation with New Delhi-based real estate firm, Unitech, with whom, it provided telecom services under the brand Uninor.
"The new company will be the platform to approach the fresh licence auctions with," Telenor said. "As a part of this process, the new entity will also seek requisite approvals from the Foreign Investment Promotion Board (FIPB) to allow Telenor Group to take up 74 per cent ownership."
Telenor said "fraud and misrepresentation" on Unitech's part voids the shareholder agreement, allowing Telenor to transfer Uninor's business into a new company at a fair market value.
The Supreme Court on February 2, cancelled 22 mobile licenses held by Uninor, a joint venture company between Telenor and Unitech, in an anti-corruption ruling, which revoked 122 such licenses (See: SC cancels all 2G licences, orders fresh spectrum auction).
Uninor has close to 40 million customers, with more than 4 per cent of the market share.