Unitech settles dispute with Telenor, to exit JV

Norwegian telecom operator Telenor and India's real estate firm Unitech on Thursday agreed to settle all their disputes amicably by withdrawing all the cases slapped against each other.

The development brings to an end the long-drawn out dispute between the two since the Supreme Court cancelled their JV firm Uninor's 22 licences in its February 2 order. Under the terms of agreement while Unitech, which holds 32.75%, will exit the JV upon receiving payment of a nominal amount, Telenor would be able to transfer all assets of Uninor to a new company and bid in the upcoming 2G spectrum auction.

Telenor would be free to get a new Indian partner to meet the mandatory 26% stake by an Indian firm in a telecom services company. However, Unitech would continue to retain economic rights in the company as per its current shareholding. This means that if any benefits accrue to the firm in terms of refund of licence fees of taxes, Unitech would be entitled to them as per its shareholding.

The two parties also informed the Delhi High Court on Thursday that they have resolved their disputes amicably.

Telenor had bought 67.25% stake in Unitech Wireless (Uninor) in 2008 for R6,120 crore.

"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. The parties are bound by confidentiality obligations, and are, therefore, not able to provide any further comments on specific terms and conditions of the settlement. However, it can be confirmed that the parties agree to support the transfer of the business in Unitech Wireless (Uninor) to a new entity controlled by Telenor," the statement issued by the two sides said.

With immediate effect, Unitech would withdraw all its nominees from Uninor's board and all its special shareholder rights will stand suspended.

... contd.

ALSO READ

Tata arm wins Jaguar trademark battle against Swiss watchmaker

Honda may boost Amaze output on heavy bookings

Diesel cars to lend 40% to volumes in FY14: Maruti

DreamWorks looks to Stone Age for new BO hit