Cellco Bharti Airtel and construction group Punj Lloyd have
decided against renewing their bids to buy the government’s
30% stake in Bharti Hexacom, a mobile services JV,
according to reports.
Both companies reportedly justified their exit from the…
Cellco Bharti Airtel and construction group Punj Lloyd have
decided against renewing their bids to buy the government’s
30% stake in Bharti Hexacom, a mobile services JV,
according to reports.
Both companies reportedly justified their exit from the sale
process by saying that it took longer than expected.
In the meantime, the government has decided to put on hold
the sale of its Hexacom stake after the cabinet secretary asked
to re-evaluate the Rs18bn (US$405m) base price fixed by its
financial adviser Deloitte Touche Tohmatsu India, according
local newspapers.
Several MPs reportedly complained that the price was too
low after the company posted profits of Rs4bn (US$90m) for
2010.
Bharti Hexacom is 30%-owned by the government through
Telecom Consultants of India (TCIL), while cellco Bharti Airtel
holds 70%. The JV offers mobile services in Rajasthan and the
northeast, serving about 10 million wireless users and 35,000
subscribers for its telemedia services.
Bharti Airtel’s and Punj Lloyd’s interest in the stake was first
reported in late September last year. A number of local and
foreign companies were also looking to bid for the stake, it was
reported at the time.
At the end of 2009, the Cabinet Committee on Economic
Affairs gave its blessing to the sale, saying that it was the right
time in order to extract the highest possible value.
