Indian telco Tata Comm (TCL) is in final talks to acquire 100% of Sri Lankan fixed-line operator Suntel, according to the Economic Times.
TCL received the approval from the Indian government, which owns a 26% stake in the company, for the proposed deal….
Indian telco Tata Comm (TCL) is in final talks to acquire 100% of Sri Lankan fixed-line operator Suntel, according to the Economic Times.
TCL received the approval from the Indian government, which owns a 26% stake in the company, for the proposed deal. According to the report, the company is looking to make its debut in the outbound voice traffic and data business with this deal.
The Economic Times also explains that TCL tried to buy Suntel in 2008 for US$90m but was outbid by state-owned Mahanagar Telephone Nigam, which submitted a US$180m offer. But the company later had to pull out due to legal issues and liabilities.
A senior official familiar with the matter was quoted saying that the deal value may be lower this time, as Suntel has not met growth predictions over the last two years.
Suntel is a joint venture between Sweden’s Overseas Telecom, India’s Metrocorp, Townsend Limited of Hong Kong, the National Development Bank, and the International Finance Corporation, according to its website.
Suntel and TCL could not be reached for comment.
