Indian telco services provider Tulip Telecom may exit the broadband JV set up with Qualcomm, if the US-based chipmaker sells the business, according to local reports.
HS Bedi, the CMD of Tulip Telecom, was quoted saying that given that the company is a…
Indian telco services provider Tulip Telecom may exit the broadband JV set up with Qualcomm, if the US-based chipmaker sells the business, according to local reports.
HS Bedi, the CMD of Tulip Telecom, was quoted saying that given that the company is a minority partner in the JV, it is up to Qualcomm to make the decisions.
A few days ago, Qualcomm confirmed it would sell its Indian wireless broadband business for about Rs50bn (US$1.1bn).
The company approached several large Indian mobile phone operators to sell the licences in four of the country’s circles it acquired in June for about US$1bn. Cellcos Bharti Airtel and Aircel have already expressed interest in the business, according industry executives cited by local newspapers.
Back in July, Tulip Telecom and Global Group, announced an alliance with Qualcomm to roll out wireless broadband in India. The US company set up the venture in which it offered a stake of up to 26% to the local partners. At the time, it had already planned to exit the venture after rolling out the network.
…seeks to raise US$220m
Tulip Telecom is looking to raise as much as Rs10bn (US$220m) from the secondary market, reported to news website livemint.com.
The proceeds of the funding will reportedly be used to finance its growth plans. The company is already in talks with brokers and said it received interest from several private equity firms, including KKR, according to the website.
Tulip is listed on the Bombay Stock Exchange but Bedi was quoted saying that the company is too undervalued for a stake sale.
Tulip Telecom could not be reached for comment.
