The conflict between Unitech and Telenor continues.
Unitech has approached the Foreign Investment Promotion Board (FIPB) to block the rights issue being planned by Telenor.
Earlier, Telenor had declared its plans to raise funds for running its operations in the country. In case Telenor goes ahead with the rights issue, Unitech will have to pay Telenor the amount equal to the money raised by Telenor through the rights issue. Telenor plans to raise Rs 12 billion through the rights issue.
In a written correspondence to FIPB, Unitech claims that its nominees on Uninor?s board had not given their consent for the rights issue being planned by Telenor. Unitech holds 32.75 per cent stake in Uninor whereas Telenor has a 67.25 per cent stake in Uninor. In its letter to FIPB, Unitech has claimed that Telenor has breached the shareholders? agreement by not fully exploring the possibility of obtaining long-term project finance.
