Press Trust of India / New Delhi Oct 13, 2009, 14:38 IST
Having failed to get returns on its Rs 100-crore investment in Bharti Hexacom, state-run TCIL today started the process to sell its 30 per cent stake in the JV by inviting investment bankers to work out the valuation.
Bharti Hexacom (BHL) is a joint venture (JV) between Bharti Airtel and TCIL. It offers mobile telecom services in Rajasthan and North East.
State-run telecom consultancy firm Telecom Consultants India (TCIL) is a 30 per cent stake holder in Bharti Hexacom. The proposal to exit BHL was cleared by the government in August, citing issues related to non-payment of dividend.
The interested agencies will have to submit their proposal with TCIL by November 12 this year, TCIL said today.
TCIL's investment in the JV company is in excess of Rs 100 crore, but Bharti has not paid any dividend saying that the company was ploughing back revenues into the company for its expansion.
The Cabinet Committee on Economic Affairs had cleared sale of TCIL's stake on the condition that it should be done at the right time to obtain the best price.
The proceeds from TCIL's stake sale in Bharti-Hexacom is expected to be used for expansion and diversification of the consultancy firm's operations.
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