Company Law Board rules against Telenor JV asset sale plan

Company Law Board, had last week told the JV not to proceed with the auction until a further order

The Company Law Board ruled on Thursday that Telenor's joint venture in India cannot go ahead with a planned auction of its assets, according to an order seen by Reuters, after the Norwegian mobile carrier's minority partner Unitech Ltd challenged the sale.

The cellular phone joint venture, which operates under the Uninor brand, invited potential bidders to express interest by August 8 and had said its majority owner, Norway's Telenor, was willing to bid in the auction.

The Company Law Board, a quasi-judicial body, had last week told the joint venture not to proceed with the auction until a further order.

 

Uninor had challenged the Company Law Board in the Delhi High Court, which, in a modified order, allowed it to seek interests from potential bidders for the sale.

The joint venture's auction plan is seen as a move by Telenor to buy out Unitech and rebuild the business, which is set to lose its radio frequency operating licences after a Supreme Court order.