Unitech reaches settlement on Uninor JV with Telenor

NEW DELHI: Realty firm Unitech on Tursday said it would exit from telecom joint venture with Norway's Telenor by disposing of its entire shareholding in Uninor and both the parties have amicably settled all legal disputes between them. Telenor wanted to scrap the JV with Unitech and migrate the business to a new company to seek fresh operating licences as the JV's 22 telecom permits were among the 122 quashed by the Supreme Court in February.

Unitech shares rose as much as 5.6 per cent after the company announced reaching settlement with Telenor. Unitech did not provide details of the settlement due to confidentiality obligations.

At 9:55 AM, shares in Unitech were trading at Rs 24.10, up 4.10% on the Bombay Stock Exchange.

In February, Telenor had served a divorce notice to Unitech and sought compensation from the real estate company after the Supreme Court cancelled 122 mobile permits. Telenor holds a little over 67% in their JV which offers mobile services under the Uninor brand while Unitech owns the rest.

"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 realty firm said in a statement. As per the agreement, Unitech and Telenor have agreed to transfer the business in Unitech Wireless (which operates under Uninor brand) to a new entity controlled by the latter. Unitech said it has "agreed to dispose of its shareholding in Uninor for a nominal amount" and its nominees will withdraw from the Uninor Board with immediate effect.

"Subsequent to a successful business transfer and spectrum auction, all disputes and claims between the parties would be withdrawn," the statement said. With the settlement of disputes with Telenor, Unitech Group will focus on its core business of real estate and monetise its land parcels across the country to enhance the stakeholder's value.

"We are pleased with the settlement reached between Unitech and Telenor. All existing disputes with Telenor are suspended and will be withdrawn upon successful transfer of business of Uninor to a new entity controlled by Telenor," Unitech Chairman Ramesh Chandra said.