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Axiata decides not to buy stake in Tikona
11 April 2012
Malaysian operator withdraws from talks about buying stake in Indian wifi service provider
Malaysian operator Axiata has withdrawn its plan to acquiring a substantial share in Indian firm Tikona Digital, owing to uncertainties in India’s telecoms policy affecting the valuation. Tikona officials were not keen on renegotiating the deal, said reports.
Prakash Bajpai, CEO of Tikona, told Business Standard: “As a policy, we do not comment on speculations.”
Tikona delivers wireless broadband services in a number of Indian cities using technology from Ruckus Wireless. The deal with Tikona would have valued the company at $1 billion and would have given Axiata a stronger presence in India. Tikona operates services on unlicensed wifi spectrum but also has a licence for 4G-based broadband wireless.
Tikona is 70% owned by private equity investors Goldman Sachs — with the biggest stake — plus Everstone Capital Advisors and Oak Investment Partners. Reports say other investors include L&T Infrastructure with 10% and Anand Rathi Securities. Founders Prakash Bajpai and Rajesh Tiwari hold nearly 2% stake in the firm. GTB
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