Nepal’s United Telecom’s three Indian investors want to reduce their stakes, according to Telecom Consultants of India (TCIL) chairman and MD Vimal Wakhlu.
The trio – state-owned TCIL, Mahanagar Telephone Nigam (MTNL) and Tata Communications…
Nepal’s United Telecom’s three Indian investors want to reduce their stakes, according to Telecom Consultants of India (TCIL) chairman and MD Vimal Wakhlu.
The trio – state-owned TCIL, Mahanagar Telephone Nigam (MTNL) and Tata Communications – are looking to sell their shares as they “are not interested in investing more”, Wakhlu told the Economic Times.
The JV partners, which each had about a 26% stake in United Telecom, are finding it tough to meet operational expenses, such as licence fees, as the business is non-profitable, the report stated.
Nepal Ventures Private (NVPL), a company formed by Nepalese citizens specifically to invest in the JV, owns the remaining 20% of shares.
Wakhlu said the Indian JV partners are allowing Nepalese companies to invest in the telco.
TCIL, an engineering and consultancy company, has already cut its stake to 21%, while divestment by the other partners is taking place “in equal proportion”, he added.
Separately, TCIL is also looking to exit its investment in Bharti Airtel unit Bharti Hexacom, Wakhlu said, noting that the company is awaiting a final evaluation report from SBI Capital Markets. Hexacom has about 18 million customers in two Indian telecoms service areas: Rajasthan and the Northeast.
TCIL, MTNL and Tata Communications were not immediately available for comment.
Last September, another local publication reported that India’s Department of Telecommunications was assessing a proposal from MTNL to sell its stake in United Telecom. The struggling state-owned telco had also reportedly hired SBI Capital Markets to review its investment.
United Telecom provides fixed-line phone and internet services.
