Unitech raises objection to Uninor's rights issue proposal

Unitech raises objection to Uninor's rights issue proposal

Realty firm Unitech has shot off a letter to FIPB objecting to its telecom partner Uninor’s proposal to raise Rs 1,200 crore through a rights issue, saying it had never agreed to the move as was being claimed by Uninor.

Unitech Wireless — the joint venture of Unitech Ltd and Norway’s Telenor which operate under Uninor brand, had applied to Foreign Investment Promotion Board (FIPB) for permission to raise funds to meet operational and capital expenditure.

Unitech, which holds 32.75 per cent stake in Uninor, said that the telecom firm misrepresented facts that its nominee directors on the board of the JV approved the proposal for rights offer in its letter to FIPB.

“We note that the letter (from Uninor seeking FIPB nod) stated that the nominee directors appointed by Unitech Ltd and its associates on the board of Uninor have also consented to the rights offer in the Board meeting of May 23, 2012,” it said. “This is wrong and a misrepresentation of facts.”

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