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 the Economic Times.
Both companies reportedly justified their exit…
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 the Economic Times.
Both companies reportedly justified their exit from the sale process by saying that it took longer than expected. Bharti Airtel was cited saying that its bid would only be valid until 13 March. The companies did not respond to emails before the press deadline.
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 just under 10 million wireless users and 35,000 subscribers for its telemedia services.
Deloitte Touche Tohmatsu India has been acting as financial adviser to TCIL.
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.
