Companies & Sectors
Unitech objects to Uninor's FIPB proposal on rights issue

Unitech, which holds 32.75% stake in Uninor, said that the telecom operator misrepresented facts that its nominee directors on the board of the JV approved the proposal for rights offer

 
New Delhi: Realty company Unitech has shot off a letter to the Foreign Investment Promotion Board (FIPB) objecting to its telecom partner Uninor's proposal to raise Rs1,200 crore through a rights issue, saying it had never agreed to the move as was being claimed by Uninor, reports PTI.
 
Unitech Wireless - the joint venture of Unitech Ltd and Norway's Telenor which operate under Uninor brand, had applied to FIPB for permission to raise funds to meet operational and capital expenditure.
 
Unitech, which holds 32.75% 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 23 May 2012," it said. "This is wrong and a misrepresentation of facts."
 
Unitech said its directors on Uninor have already written to the company pointing that "the issue of rights offer was not even an agenda item in the meeting dated 23rd May."
 
"There was only some discussion on the rights issue. No decision was or could have been made especially since the proposed rights issue is a matter of arbitration between the shareholders," it said.
 
The realty firm said that matter of rights issue is pending before arbitration tribunal and next date for hearing in the matter is on 24th September in Singapore.
 
Unitech alleged that the proposal of rights issue is probably an attempt by its Norwegian partner Telenor in the JV to introduce a new partner in an indirect manner.
 
"Telenor has made its intent to continue the telecom business in India with a new partner of its choice clear.
 
Telenor's FIPB proposal should be taken up only after the credentials of this new partner," Unitech alleged.
 
The realty firm said that shareholders agreement of Uninor contains gives priority of funding business by way of project finance and option of 'rights issue' come later.
 
"Telenor breached the hierarchy by not fully exploring the possibility of obtaining long term project finance and indeed, when at one point of time when project finance was available through State Bank of India, it was deliberately not taken," Unitech letter said.
 
Comments of Uninor and Telenor were not received till the time this report was filed.
 

User

Goa to cancel licenses of 40 mining companies

Goa would cancel licences of 40 mines whose delay in filing of `J form' had been condoned by the previous governments in the state

Panaji: The Goa government has decided to cancel licences of 40 mines, whose delay in filing of `J form' under the `Goa, Daman and Diu Mining Concession Act 1987' had been condoned by the previous Congress-led governments, reports PTI.

 

Chief Minister Manohar Parrikar said in the state Legislative Assembly that all the 40 licences would be cancelled within two weeks.

 

Deadline for filing J form was 22 November 1988. But some of the forms were filed as late as 2005.

 

J form is necessary for conversion of old mining concessions granted during the Portuguese rule into formal leases.

 

Parrikar said that only Union Government had the power to condone the delay. Goa has 90-odd mining leases.

User

S&P says asset quality of Indian banks may deteriorate further

According to the ratings agency, asset quality of Indian banks is likely to deteriorate due to the moderation in economic activity, high inflation, high interest rates, and rupee depreciation

 
New Delhi: Global rating agency Standard & Poor's (S&P) said bad loans of Indian banks may increase further due to sluggishness in the economy coupled with high interest rate regime, reports PTI.
 
Banks in the world's largest developing economies of Brazil, Russia, India, and China (BRIC) could come under pressure over the next 12-24 months, S&P said in a report.
 
"We believe the asset quality of Indian banks is likely to deteriorate due to the moderation in economic activity, high inflation, high interest rates, and rupee depreciation," S&P credit analyst Geeta Chugh said.
 
She pointed out that small and midsize companies are particularly vulnerable. "Stress is also mounting on some highly leveraged large companies (in India)," she added.
 
An RBI working group recently suggested higher loan-loss provisions and ultimately ending forbearance on asset classification, and recognition of these stressed assets as non-performing.
 
The group has recommended increasing the provision requirements on restructured loans to 5%, from the current 2%.
 
NPAs in public sector banks which dominates the Indian banking industry stood at about 3.3% of the assets in 2011-12 against 2.3% a year ago.
 
The S&P report titled 'Government Support Should Enable BRIC Banks To Ward Off Economic Headwinds' further said that a slowdown in growth in China, Brazil, and particularly India could weaken the asset quality and earnings of banks in these countries.
 
However, it said the BRIC banks ties with governments may improve their credit profiles.
 
State ownership and control of a significant part of the banking industry in BRIC countries is a critical rating factor, it said.
 
"Such a link is integral to the economic model of these countries. We expect governments to step in to avoid any abrupt and unexpected deterioration in local banks' financial condition. Government ownership and economic development policies link the credit ratings on the largest BRIC banks to government creditworthiness," she added.
 
According to the report, whereas asset quality in Brazil, China, and India is weakening, problem assets in Russia are declining from the peak of the recession despite credit risk in Russia remaining very high.
 
The earnings of banks in China and Brazil could decline in 2012, but remain satisfactory. Returns in India and Russia in 2012 are likely to be at levels similar to 2011, it said.
 
The negative outlook on the banks in India (BBB-/Negative/A-3) reflects the negative outlook on the sovereign rating.
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)