Norway’s Telenor in a statement said on Friday that it had approached an Indian court to lift a “stay order” imposed on a proposed rights issue to raise funds for its local mobile phone unit Uninor. Telenor said in a statement the Uninor board had decided to launch a rights issue to meet funding requirements, but the process was halted after the court order.
Telenor did not say who had requested the court’s stay order on the launch of the rights issue. It also did not give the amount it was planning to raise through the share issue.
“Telenor group is petitioning the court to vacate the stay order so the decision of the company’s board can be implemented and Uninor gets the funds it needs,” the statement said.
In a separate statement on Friday, Indian real estate firm Unitech which is Telenor’s joint venture partner in Uninor, said it had obtained a stay order on “certain actions” that Telenor was planning to take. Unitech said it sought the court’s stay order on Telenor actions as they were not in the best interests of the shareholders. The company did not elaborate on the actions that Telenor was planning to take.
“We will continue to engage in constructive discussions with Telenor while protecting our legal rights in the matter,” the Unitech statement said.
“However, we would like to reiterate that Unitech continues to be a long-term and committed investor in Uninor,” it said. “We cannot comment further in this matter since it is sub- judice.”