Norway’s Telenor is reportedly in talks to acquire a majority stake in Indian cellco Videcon Telecom, although a Rs5bn (US$77.8m) fee owed to the government could prove to be a hurdle.
Videcon is looking for a valuation of about Rs100bn (US$1.56bn),…
Norway’s Telenor is reportedly in talks to acquire a majority stake in Indian cellco Videcon Telecom, although a Rs5bn (US$77.8m) fee owed to the government could prove to be a hurdle.
Videcon is looking for a valuation of about Rs100bn (US$1.56bn), which would include the debt, the Economic Times reported.
Videocon CEO Arvind Bali was cited saying the company is in talks with “international companies” regarding a stake sale, while Uninor CEO Vivek Sook has previously described smaller rival Videocon as a “viable” target, adding that the companies have “obvious compatibility” given their liberalised spectrum.
Local M&A rules require buyers to pay market prices for spectrum gained via an acquisition if the airwaves were not secured at auction.
The Department of Telecommunications (DoT) has asked the smallest nine operators, including Videocon and Uninor, to pay a one-off fee in order to continue providing mobile services, even after an apex court cancelled their permits. All nine are currently disputing the fee.
