A consortium comprising BSNL and MTNL looks to acquire 50 per cent stake.

A consortium comprising India’s telecom PSUs BSNL and MTNL, among others, today said it had started negotiations for acquiring control of Kuwait’s biggest phone company, Zain Telecom, that has presence in 24 countries.

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The talks come days after failure of renewed negotiations between India’s Bharti Airtel and South Africa’s MTN.

Besides BSNL and MTNL, other members of the consortium are India’s Vavasi group and a Malaysian entity. The deal is expected to be a multi-billion dollar transaction.

Speaking on the sidelines of an International Telecommunication Union (ITU) conference here, Goyal said the consortium has begun talks and was looking for at least 50 per cent stake with management control. “We’ll prefer a controlling stake (over 50 per cent),” he added.

Goyal did not comment on what would be the stake of individual consortium members, saying these things would be part of the negotiations.

Asked for his comments, Telecom Minister A Raja said: “It’s well within the scope of the PSUs. They have every right to go global. If the Department of Telecom feels that it (the deal) is detrimental to the two PSUs, only then the DoT will seek a clarification from them.”

Raja further added that “if they reach a deal, it will then need the approval of different ministries, as also from the Cabinet”.

Earlier yesterday, Kharafi Group, one of the largest shareholders of Zain, had said it hadreceived interest from a group of investors, including BSNL, MTNL, Vavasi and Malaysian billionaire Syed Mokhtar al-Bukhar, for acquiring up to 46 per cent stake in Kuwait’s largest telecom company.

“We have received an official letter stating that BSNL and MTNL are interested to participate in the proposal for buying up to 46 per cent of Zain’s shares from the Kharafi group,” Kharafi’s Group’s vice-chairman Badr al-Kharafi had said in a statement.

There have been reports that the stake could be valued at about $13.7 billion. Kharafi reportedly holds over 20 per cent stake in Zain.

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