CLB stops Uninor from auctioning its asset

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The Company Law Board on Thursday stopped telecom operator Uninor from auctioning its assets.

"I allow the application and injunct the respondent (Uninor) from taking any steps whatsoever in pursuance to the auction notice published on August 1 or similar notices that may have been published," CLB chairman Justice D.R. Deshmukh said in his order.

Uninor is a joint venture telecom company between Norway's Telenor and realty major Unitech.

Uninor on August 1 invited potential bidders to express interest by August 6 and said its majority owner, Norway's Telenor, was willing to pay Rs 4,190 crore for its 30 million customers and assets in case no other bidder turns up.

This move was opposed strongly by Unitech, which hold 32.75 per cent stake in Uninor, and approached CLB against the notice.

Telenor wants to scrap the joint venture with Unitech and migrate its business to a new company to seek fresh operating licences as the JV's 22 telecom permits were among the 122 quashed by the Supreme Court in February.

Uninor had said it wanted to auction the company's business, including its assets, while it is a going concern before the September 7 deadline set by the apex court for winding up of operations of all the firms whose licences had been cancelled.

Uninor has approached Delhi High Court which modified Company Law Board (CLB) stay order on the auction and allowed Uninor to receive till August 8 the expressions of interest (EoI) from bidders interested in purchasing the company's business.

"Let the auction process continue and it would be clarified (in the order) that nothing will be confirmed till the CLB finally decides the matter," the High Court said on the application filed by Uninor.

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