Telenor is planning to form a new company with a new partner in India by June 2. This is to participate in the re-bid for the 2G spectrum.
The Norwegian group will have 74 per cent in the new company. It has approached the Foreign Investment Promotion Board in his regard, said Mr Sigve Brekke, Managing Director, Uninor, which is a joint venture between Telenor and Unitech.
“We are having discussions with many players. We want to form the company before June 2, when the Supreme Court will give views on the licence issue,” he told newspersons.
Two days ago, Uninor moved the Supreme Court asking it to direct the Union Government to auction 2G spectrum by June 2. The Government, on the other hand, sought 400 days to complete the auction process.
The Supreme Court in February cancelled 122 spectrum licences granted during the former Telecom Minister, Mr A. Raja's tenure. It found that their allocation was carried out “illegally.”
Mr Brekke said that company's immediate priorities were to find a solution with the existing partner, find a new partner and then transfer all the assets to the new company, he said.
The company is also exploring the option of invoking the bilateral treaty with Singapore to protect investment in India. “We have not decided on this yet,” he said. The Norwegian Government has also given its support to Telenor, he said.
Telenor currently has a 67.25 per cent indirect ownership stake in Unitech Wireless held through Singapore-registered Telenor Asia Pte Ltd. The investment is around Rs 6,135 crore in equity and over Rs 8,000 crore in debt through corporate guarantees. Uninor has around four crore customers in India.
Uninor and Telenor have said that they have been unfairly harmed by the recent court ruling. “We will explore every option available to protect our lawful investments in India,” he said.
Mr Brekke said that the group came to India with a long-term view of 10-15 years. “We continue to hold that view despite the Supreme Court ruling,” he said.
The company has invested Rs 15,000 crore in India. “We want to break even by next year,” he said.
On the issue of giving $150 million to Unitech, Mr Brekke said that the issue is before the Company Law Board and he was not in a position to give any information.