Bangladesh News

Prof Muhammad Yunus, whose Grameen Telecom is embroiled in a tussle over Grameenphone’s controlling share with its joint venture partner Norwegian telecoms company Telenor, yesterday had a discussion with Telenor President and CEO Jon Fredrik Baksaas over the contentious issue.
When asked to comment on the matter at a press conference at Oslo, Yunus said: “We have outstanding issues and we will continue to talk with them (Telenor). We have wonderful relationship with Telenor in Bangladesh. Telenor went out of the way to come to Bangladesh and joined hands with Grameen where Grameen provided the philosophy and Telenor the technology.”

“Professor Yunus and I had a good dialogue this morning regarding the future of Grameenphone,” said Baksaas, the president and CEO of Telenor, after the morning meeting at the Telenor head office.

“Given the size and impact of the company, the questions that have arisen deserve a thorough process conducted in a responsible manner. I look forward to further fruitful discussions with Professor Yunus and Grameen Telecom and I am very optimistic that we will find common ground for continued and strengthened dialogue to the best for Grameenphone and Bangladesh. As for today, I want to pay tribute to Professor Yunus and Grameen Bank,” said Baksaas.

Grameen phone was created in 1996 as a joint venture between Telenor, Grameen and two minor partners, which have since been bought out. Telenor now holds a 62 percent share of the company, with Grameen Telecom, a unit of Grameen Bank, holding the remaining 38 percent.

Earlier, Fortune magazine on Tuesday quoted Yunus as saying “Telenor agreed to give us majority ownership within six years. Our intent was to convert to a social business enterprise [where profits are reinvested in the company rather than taken out], but Telenor does not accept.”

According to Reuters, a Telenor spokesman said the clause in the agreement concerning the intention to reduce the stake applied only for the first six years of the deal. He said Telenor had not given details of the agreement earlier as it was not public.

Telenor said the shareholders of GrameenPhone had shown that they agreed Telenor should be the majority owner by letting the company make loan agreements with, among others, the World Bank, which required that Telenor retain the majority.

GREATER SHARE OF GP
The third largest newspaper in Norway, Dabladet, yesterday reported an old contract between Telenor Investment Company (TNI) and Grameen dated June 28, 1996 found in Norad archive has established that Prof Yunus has been right in demanding greater share of Grameenphone, the largest cellphone company in Bangladesh.

Paragraph 13.6 of the contract says: It is TNI’s intention to reduce its share of the company (GP) to less than 35 percent within six years after the company is formed.

Paragraph 13.4 says Grameen will be given the first right to buy the shares.