MTNL, which has been shortlisted as the preferred bidder to acquire Sri Lankan telco Suntel, is already in talks with partners to offload a 50% stake in the company (Suntel).If Suntel were to be a 100% subsidiary, it will be subject to the policies and practices of MTNL. But, Suntel is a profit-making company and MTNL wants it to retain its existing structure with regard to all its policies — MTNL is of the view that this can be achieved if it limits its stake in the Sri Lankan telco to 50%.
As the target company is being run by highly-skilled professionals, to maintain its existing structure with regards to HR and other policies, MTNL has in principle decided to limit its stake to 50% and is in talks to find suitable partners.
MTNL, which offers telecom, internet and IPTV services in the metros of Delhi and Mumbai, had been witnessing a fall in its revenues and profits over the last couple of quarters due to market saturation in these two cities. The PSU, which is a JV partner in Nepal’s United Telecom and also offers telecom services in Mauritius through its 100% subsidiary, has been scouting global markets for new licences.
Sri Lanka is set to be the company’s third market outside India.Over the last couple of years, MTNL has lost its bid to acquire Telekom Kenya in addition to failing to win mobile licences in Saudi Arabia, Qatar, Bhutan and several other countries .
Read more in
The Economic Times article.
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