India’s telecom PSUs, Bharat Sanchar Nagam Ltd (BSNL) and Mahanagar Telephone Nagam Ltd (MTNL), have been shortlisted to participate in buying out the majority stake in Zambia’s leading telecom company, Zambia Telecommunications Ltd (Zamtel).
In all, eight companies/consortia from over the globe have successfully prequalified to participate in the bid. State-run Zamtel is Zambia’s only licensed fixed-line provider of voice and data communications and the state plans to sell up to 75 percent in it as part of a privatisation drive. Its revenues for the year to end-December were $100 million.
Around 30 companies had applied to prequalify in the bidding for Zamtel. Now the prequalified companies and consortia will be invited to participate in the due diligence process, scheduled to commence on November 2, till December 23.
The pre-qualified companies would now submit a bid for between 51 and 75 percent of the equity in Zamtel, based on their own evaluation of the company and the market opportunity. The announcement of short listed bids will be made on January 11, 2010. Thereafter, successful companies or consortia will be invited to take part in the next phase of the process.
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