Unitech to sell its Uninor stake to Telenor

Telenor and Unitech have ended their year long dispute with the domestic real estate company agreeing to sell its 33.75 per cent stake in Unitech Wireless, the joint venture which runs mobile services across the country to the Norwegian partner. As part of the agreement, Unitech will continue to retain economic rights associated with the shareholding which include any refunds it might get due to cancellation of its licence. 

Unitech had invested around Rs 650 crore in the joint venture, so while the actual amount of the deal has been not disclosed except that it is of a nominal amount, it obviously could entail some premium. According to the valuation undertaken by Unitech, the joint venture was valued at Rs 12,000 crore. However this was before the Supreme Court cancelled its licences. Telenor had, however, valued the company at only Rs 400 crore which was not acceptable by the partner. As a result both sides were involved in bitter court battles and arbitration. 

Telenor, which is planning to bid for the upcoming 2G auction, in fact set up a separate company to bid for the auction and sought permission to transfer its assets and subscribers from the joint venture. It also publicly said it was looking for a new partner in India.