Telecom service provider Uninor Wednesday said it will auction its business and assets to get maximum possible returns for its investors.
The company has invited bids till August 6. Norway’s Telenor, which has 67.25 percent shares in Uninor, is keen to buy the company.
The move is being opposed by joint venture partner Unitech.
"In view of the impending Supreme Court mandated cancellation of license on Sep 7, 2012, Uninor management has decided to conduct an auction of Uninor's business, including its assets, while the company is still a going concern," Uninor said in a statement.
"This will allow the company to generate the maximum possible returns for its creditors and also secure the future of Uninor’s customers, employees and business partners in the hands of new ownership," it added.
In a separate statement, Telenor said: "Despite adverse circumstances, it is willing to participate in this auction and procure all of Uninor’s business. This will ensure that the value of Uninor’s business is preserved, and not allowed to be destroyed."
"As regards Unitech's veto rights, we believe these are automatically forfeited once it is established that the shareholders' agreement and all rights enshrined in it, was based on fraud. We are willing to establish this in court, should the need arise," it added.
Unitech, which has 32.75 percent shares, has vetoed Uninor proposal to auction assets and has indicated that it may initiate legal action if Uninor goes ahead with the auction.
However, according to Uninor, this process will ensure that the value of the Uninor business is secured beyond Sep 7 as the winning bidder would have the ability to continue Uninor's business as a going concern beyond this date.
It also said that if the auction process is not followed, the company would have no option but to be liquidated post Sep 7, when the company loses its licences.
The Supreme Court ordered cancellation of 122 licences Feb 2 and had set a deadline of Sep 7 for all the affected firms to shut down operations.