Indian real estate firm Unitech has agreed to sell its stake in wireless operator Uninor to its joint venture partner, Norway’s Telenor Group, for a ‘nominal amount’. Reuters reports that the two companies have agreed to transfer the joint venture’s assets to a separate entity controlled by Telenor. Unitech will withdraw all its nominee directors on the Uninor board and will suspend shareholders rights. Further, the Indian firm added that: ‘Subsequent to a successful business transfer and spectrum auction, all disputes and claims between the parties shall stand withdrawn/concluded.’ As previously reported by CommsUpdate the duo have been at loggerheads since a Supreme Court ruling in February this year stripped Uninor of its licences. Telenor blamed its partner for the cancellation and sought to extricate itself from the Indian firm, though until now Unitech has blocked all attempts at division.
By ending the litigious dispute, the agreement gives Telenor free rein to participate in the upcoming spectrum auction.However if the Norwegian group is successful in bidding for spectrum, it will need to enlist a new local partner before resuming operations in order to comply with regulations on foreign direct investment (FDI).