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BSNL and MTNL to exit Zain consortium
18 November 2009
Indian state operators BSNL and MTNL are on the point of withdrawing from the consortium planning a bid for a stake in Zain, according to reports
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Zain
BSNL
MTNL
Vavasi
Al-Bukhary
Kharafi
Comment: It is becoming harder and harder to have confidence in this Zain deal. Vavasi is a company with a relatively small presence in the telecoms industry. BSNL and MTNL for a long time denied any interest. Then they said they might be, but now they are drifting away. Is there anything real to this proposal?
Indian state-owned operator BSNL is leaving the consortium seeking to acquire 46% in Zain, according to reports in India’s Business Standard. The consortium includes Delhi-based Vavasi Group and Malaysia’s Al-Bukhary.
According to the report, Vavasi may choose a new partner from Asia outside India or Europe.
Another Mahanagar Telephone Nigam, which is the second partner, is also planning to leave the consortium.
The price of the deal, valued at $13.7 billion, was too high, said Kuldeep Goyal, BSNL chairman and managing director (pictured). The Kharafi family and Kuwait Investment Agency, with a 25% stake, are the major shareholders of Zain.
Bharti Airtel, India’s largest telecom company by number of subscribers, is also interested in purchasing Zain, in order to expand its business in the African and West Asian markets. GTB