Indian state-owned Mahanagar Telephone Nigam (MTNL) has reportedly proposed to sell its stake in its Nepalese joint venture United Telecom (UTL), believing the fixed-line operator is not commercially viable.
India’s Department of Telecommunications…
Indian state-owned Mahanagar Telephone Nigam (MTNL) has reportedly proposed to sell its stake in its Nepalese joint venture United Telecom (UTL), believing the fixed-line operator is not commercially viable.
India’s Department of Telecommunications (DoT) is assessing the proposal, the Business Standard reported referencing a note from the authority.
Neither MTNL nor UTL was immediately available to comment.
MTNL hired SBI Capital Markets a few months ago to review its 26.68% in UTL, according to the report.
Fellow Indian joint venture partners Telecommunications Consultants India (TCIL) and Tata Communications also own above 26% each of the Nepalese operator. Local partner Nepal Ventures Private (NVPL) has a 20% holding.
UTL shareholders decided at a recent meeting to increase UTL’s authorised share capital to NPR6bn (US$61.6m). MTNL has decided not to inject any new equity into the company while Nepal Ventures, a subsidiary of the Vishal Group, will reportedly pour about NPR450m (US$4.6m) into the company.
All shareholders other than Nepal Ventures will have the option to exit the company in about two years, the report stated.
