Unitech agrees to sell its Uninor stake at fair value

The Unitech Group has agreed in principle to sell its stake in Uninor to joint venture partner Telenor at a fair value. The proposal was made before the Company Law Board (CLB) by Unitech lawyers on Monday in a closed-door meeting, according to people close to the development.

Both sides declined to comment on the proposal. The next hearing is scheduled for Friday.

The CLB had last week asked Unitech to decide by March 19 if it wanted to buy Telenor’s 67 per cent stake in Uninor or sell its 33 per cent stake to the Norwegian partner. Both Unitech and Telenor had moved CLB separately against each other, to protect their investments and rights.

In another development, Unitech has filed an application before the Supreme Court, asking it to direct the government to conduct the 2G spectrum auction by June 2. Telenor’s 22 licences in India were among the 122 ordered cancelled by the court on February 2.

“The auctions can and should happen by June 2. We don’t think 400 days are needed,” said Sigve Brekke, head of Telenor’s Asian operations and also managing director of the Indian venture. Brekke declined to comment when asked if Telenor was open to buying out Unitech from their joint venture.

He said Telenor’s Indian unit had suggested the telecom regulator keep the base price in the 2G spectrum auction the same as that in the 3G auction of 2010. Telenor owns 67.25 per cent in the Indian JV while Unitech holds the rest. Telenor has also said it would find a new partner and move Uninor’s assets to a new company.