The Indian government is reconsidering a sale of its stake in telco Bharti Hexacom.
The state, which holds 30% in Hexacom via Telecommunications Consultant India (TCIL), had tried to exit the investment previously but abandoned the plans in 2011.
At…
The Indian government is reconsidering a sale of its stake in telco Bharti Hexacom.
The state, which holds 30% in Hexacom via Telecommunications Consultant India (TCIL), had tried to exit the investment previously but abandoned the plans in 2011.
At the time it was said that the state wanted to keep the investment following improved performance of the business and potentially more attractive valuations after the introduction of 3G services.
With reference to an unnamed TCIL executive the Economic Times reported now that a plan to sell Hexacom is back on the agenda. It is seen as an alternative to divesting TCIL itself, the article stated.
Hexacom, which has 18 million customers in two of India’s circles, Rajasthan and Northeast, is majority owned by Bharti Airtel, which would have the right of first refusal if the state wanted to exit the venture.
The 30% stake in Hexacom is valued at RS1,400 crore (US$230m), the Times quoted a TCIL board member as saying.
The decision whether or not to exit the telco is in the hands of India’s Telecoms Commission.
According to the report TCIL could soon appoint advisers to establish a reserve price for the 30% stake.
