  Indian partner Unitech on Tuesday reacted sharply to Telenor’s move to dump it to look for new JV partner in India calling it complete disregard and oppression of the minority shareholder by Telenor.
"We reiterate that the Hon'ble Supreme Court has cancelled all the UAS licenses and spectrum granted on and after 10th January 2008 while questioning the government policy. Unitech cannot be held responsible for this in any manner," Unitech said in a statement.
"It is shocking that Telenor intends to transfer the entire business to a new affiliated entity owned by itself. This not only shows complete disregard and oppression of the minority shareholder by Telenor, but is also against all principles of related party transactions. Telenor cannot transfer any assets of Uninor without the consent of Unitech because we have veto right in the shareholders' agreement as well as in the articles of association for such matters," it further said.
Resolving to fight back Unitech also said that telenor is trying to 'circumvent the noncompete provisions of the shareholders' agreement'.
Unitech said that it would take 'legal rights to protect its investments and rights available to us under the shareholders' agreement and the Indian laws'. Executives close to Unitech claimed that Telenor could not transfer any asset of Uninor as the realty firm held a veto rights. They further added that 75% shareholder votes were needed to transfer assets to a new company and also that Unitech could block this proposal at the upcoming board meeting. |