Uninor To Auction Its Mobile Biz

Uninor has decided to auction its business, including the assets, while the company is still a going concern, a company statement said today. (See Uninor To Scale Down Operations.)

The company believes that this will allow it to generate maximum return for its creditors and also secure the future of Uninor's employees and customers. Uninor further states that it will not have any option but to go for liquidation post September 7, 2012, when the company loses its license.

Uninor was one of the eight firms which had lost all of its licenses when the Supreme Court cancelled 122 licenses granted in the 2008 sale. (See Uncertainty Hits Uninor's Subscriber Growth.)

Uninor plans to auction all movable, immovable assets and liabilities. However, these liabilities will not include long-term and short-term debts. It will also auction domestic and international long-distance services.

"The management is obliged to take this course in light of its duties towards the company's stakeholders, including its customers, employees, shareholders and partners. More so when we already have an interest from the Telenor Group willing to procure Uninors business. Telenor Asia Pte Ltd, the majority shareholder of the company, has indicated its willingness to participate through an Indian affiliate entity in the auction of the business of the company," says the company statement.

The company has so far made a total investment of INR 140 billion (US$2.52 billion) in the India operations.

Telenor's India partner, Unitech is likely to oppose this auction.

Telenor had earlier threatened to exit India after it lost its licenses earlier this year.

Gagandeep Kaur, Editor, Light Reading India