Uninor will auction its business and assets to get maximum possible
returns for its investors and has invited bids till August 6.
"In view of the impending Supreme Court mandated cancellation of license on September 7, 2012, Uninor management has decided to conduct an auction of
Uninor's business, including its assets, while the company is still a going concern," Uninor said in a statement.
Norway-based Telenor, which has 67.25 per cent stake in the telecom service provider,
is keen to buy the company. The move is being
opposed by joint venture partner Unitech.
"This (sale of assets) will allow the company to generate the maximum possible returns for its creditors and also secure the future of Uninor's customers, employees and business partners in the hands of new ownership," Uninor added.
In a separate statement, Telenor said that despite adverse circumstances, it is willing to "participate in this auction and procure all of Uninor's business. This will ensure that the
value of Uninor's business is preserved, and not allowed to be destroyed."
"As regards Unitech's veto rights, we believe these are automatically forfeited once it is established that the shareholders' agreement and all rights enshrined in it, was based on fraud. We are willing to establish this in court, should the need arise," Telenor said.
Unitech, which has 32.75 per cent shares, has vetoed Uninor proposal to auction assets and has indicated that it may initiate legal action if Uninor goes ahead with the auction.
However, according to Uninor, the process will ensure that the value of the Uninor business is secured beyond September 7 as the winning bidder would have the ability to continue Uninor's business as a going concern beyond this date.
It also said that if the auction process is not followed, the company would have no option but to be liquidated post September 7, when the company loses its licences.
The Supreme Court ordered cancellation of 122 licences February 2 and had set a deadline of September 7 for all the affected firms to shut down operations.
With inputs from IANS
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