Fixed-line operator Sri Lanka Telecom (SLT) is not interested in buying local telco Suntel the company said, denying local newspaper reports.
In a notice to the Colombo Stock Exchange, the company wrote: “SLT had conducted due diligence for a possible…
Fixed-line operator Sri Lanka Telecom (SLT) is not interested in buying local telco Suntel the company said, denying local newspaper reports.
In a notice to the Colombo Stock Exchange, the company wrote: “SLT had conducted due diligence for a possible purchase; however SLT formally withdrew from this process on 24 August 2011 and has no offer under evaluation by Suntel shareholders.”
Suntel has been for sale for quite some time. In October last year, it was reported that Indian network operator Tata Comm (TCL) was in final talks to acquire 100% of Suntel.
Already in 2008, TCL had tried to buy Suntel for US$90m but was outbid by Indian state-owned Mahanagar Telephone Nigam (MTNL), which submitted a US$180m offer. But the company later had to pull out due to legal issues.
UAE’s Etisalat also reportedly submitted an offer in the past.
More recently, in April 2011, Sri Lankan cellco Dialog Axiata denied it was looking to acquire a stake in Suntel.
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.
