Uninor auction halted

10 Aug 2012

The sale of Indian cellco Uninor has been halted by the Company Law Board (CLB) which today issued an injunction preventing the company from ‘taking any steps whatsoever’ towards auctioning its business. Uninor had invited expressions of interest for its business, in an effort to prevent ‘certain destruction of value’ when the provider’s licence is terminated in September, as per the Supreme Court’s order. The sale was opposed by minority stakeholder in the joint venture, Unitech which has been embroiled in a bitter dispute with its partner Telenor of Norway. The CLB said of the proposed sale: ‘The intent and purpose of the auction notice dated 1 August is malafide, as it intends to completely oust the… minority shareholders from the management of the company.’ Uninor will continue to pursue the sale, however, the company announcing that it would move its arguments to the higher courts.

India, Telenor India