MTNL puts overseas acquisition on hold, keen to partner BSNL
Press Trust of India / New Delhi Dec 31, 2009, 16:49 IST
State-run MTNL has put its overseas acquisitions plans on the backburner for the time being as it decides to focus on improving its marketshare in Delhi and Mumbai--the only places where it operates.
"Right now we don't have any plans ... I am concentrating on my in-house business more... We are doing very well in Nepal and Mauritius, which are going to fetch good revenues. It is not that we have all together stopped. For some time we are not very active," MTNL CMD RSP Sinha told PTI.
However, the NYSE listed company has expressed its desire to partner its big brother PSU BSNL in their overseas acquisition, especially in the emerging markets. The PSU has a mobile subscriber base of 44 lakh and is eyeing 50 lakh before the fiscal end. MTNL shares were trading at Rs 73.85, down 0.94 per cent.
"If BSNL is looking towards them (emerging markets) for acquisitions, we would also like to join them as a partner when they finally decide (on any target company). We tell them take us along with you as a partner," he said.
BSNL has placed a bid for buying up to 75 per cent stake in Zambia's lone fixed line operator Zamtel. In the past MTNL had lost the bid to Kenya's second national licence. After emerging as the preferred buyer for Sri Lanka's Suntel, the PSU put the proposal on the backburner as valuation issues cropped up over some legal liabilities.
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