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BSNL, MTNL join race for Zain Telecom

 
10/06/2009 02:30:00 PM
Bsnl

Mumbai, Oct (EPC News): Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have reportedly written a joint letter to the Vavasi Group, expressing their interest for a joint bid in Kuwait based Zain Telecom.

BSNL and MTNL are keen to participate in the proposal for buying up to 46% of Zain's shares.

In September 2009, Kharafi Group, a major shareholder in Zain, had said it will sell its 20% stake and an additional 26% from other stakeholders to the consortium. The deal was estimated at $13.7 billion (approx Rs 65,760 crore).

The consortium, led by Vavasi Group (Delhi), and Syed Mokhtar al-Bukhary (Malaysia), is likely to rope in an international investment banker for the valuation exercise shortly.

BSNL and MTNL will separately appoint their bankers for legal due diligence and valuation once they receive government approval for the deal.

Apart from BSNL and MTNL, Bharti Airtel and the Essar Group are also vying for a share in Zain.

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