Indian authorities to inspect Telenor-Uninor transaction / News / The Foreigner

Indian authorities to inspect Telenor-Uninor transaction. The Indian Ministry of Corporate Affairs (MCA) has ordered an inspection of Uninor’s records following allegations Telenor and Unitech violated the Companies Act. The government probe is to establish whether or not Uninor, formerly known as Unitech,   illegally sold approximately 67 percent of the telecom subsidiary to Telenor, after the Norwegian telecommunications giant gave them telecom licences and spectrum for totaling 16,510 million Indian rupees. “In this inquiry the regional director has been asked to do a thorough investigation on whether Unitech disposed of (completely or partially) 2G licenses, how were the licenses acquired by Unitech, what are details of the share agreement between Telenor and the telecom subsidiary of Unitech,” an anonymous senior MCA official tells Mint business newspaper.

telenor, india, government, authorities, books, inspection, uninor, unitech, mobile, shares, investment, money, deal, unclear



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Indian authorities to inspect Telenor-Uninor transaction

Published on Wednesday, 22nd September, 2010 at 10:37 under the news category, by Ramona Tancau and Michael Sandelson   .
Last Updated on 22nd September 2010 at 13:57.

The Indian Ministry of Corporate Affairs (MCA) has ordered an inspection of Uninor’s records following allegations Telenor and Unitech violated the Companies Act.

Telenor Pakistan HQ, Islamabad
Telenor Pakistan HQ, Islamabad
Photo: Telenor


Ambiguous

The government probe is to establish whether or not Uninor, formerly known as Unitech,   illegally sold approximately 67 percent of the telecom subsidiary to Telenor, after the Norwegian telecommunications giant gave them telecom licences and spectrum for totaling 16,510 million Indian rupees.

“In this inquiry the regional director has been asked to do a thorough investigation on whether Unitech disposed of (completely or partially) 2G licenses, how were the licenses acquired by Unitech, what are details of the share agreement between Telenor and the telecom subsidiary of Unitech,” an anonymous senior MCA official tells Mint business newspaper.

Telenor paid Unitech 110,000 million rupees. Glenn Mandelid, Communications Director for Telenor Asia claims Indian authorities have not told the company of its intentions.

“We have not received any formal request from Indian authorities and therefore cannot comment about speculations in the media. What we have said earlier is that Telenor has invested in Uninor, and this has been put into the company as working capital. Both shareholders are still in the company,” he tells The Foreigner.

Indian turmoil

This issue adds to a chain of problems that Telenor encountered in India since it penetrated the market.

Uninor has not achieved the projections. In Q1 this year, the company owned just 0.8 percent of the market, and lost 8,000 customers, while the total number of Indian subscribers grew by 16 million.

Managing Director of Uninor, Stein-Erik Vellan, announced his resignation this July, after Telenor’s President and CEO Jon Fredrik Baksaas declared the company’s management was “disappointed” with Uninor’s achievements to the date. 

“Telenor was always good at getting customers and capturing large shares of new markets. It’s hasn’t achieved anything in India,” Espen Torgersen, an analyst at Carnegie said.



Published on Wednesday, 22nd September, 2010 at 10:37 under the news category, by Ramona Tancau and Michael Sandelson   .
Last updated on 22nd September 2010 at 13:57.

This post has the following tags: telenor, india, government, authorities, books, inspection, uninor, unitech, mobile, shares, investment, money, deal, unclear.





  
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