Unitech seeking $150m for Uninor stake

Dylan Bushell-Embling
26 Mar 2012
00:00

Unitech Wireless wants around $150 million for its 32.7% stake in Indian operator Uninor, but majority partner Telenor appears unwilling to buy.

revoke

http://www.telecomasia.net/content/india-revokes-122-2g-licenses

The nation's Company Law Board gave Telenor until last week to decide whether it wanted to sell its stake in the venture, or buy out Telenor's majority stake.

Unitech is now indicating it wants around $150 million for its stake, reflecting the investments the company has made in the venture, India's Economic Timesreported.

But Telenor has long asserted it simply wants to dissolve the partnership and make a fresh start in India with a new local partner.

The company claims it should not be required to buy out Telenor's stake, as without spectrum licenses there is nothing to buy and the JV no longer exists.

Telenor also recently sought compensation from Unitech over the damages caused by the license cancellation.

In a situation mirroring the experience of multiple international entrants into the Indian telecom market, Telenor entered its partnership with Unitech as a direct result of Unitech receiving the 2G license in 2008.

Uninor had attracted around 40 million customers since launch, but due to the supreme court's decision its licenses will be revoked in June.

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