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| Vavasi to approach BSNL, MTNL for due diligence of Zain |
| Press Trust of India / New Delhi Nov 18, 2009, 18:18 IST |
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Vavasi group, a city-based firm with diverisifed interests, today said it would approach government-owned Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) to join in doing due diligence of Kuwait's Zain Telecom.
Vavasi's claim comes amid reports that the PSUs are unlikely to be its consortium partners for the proposed deal.
"We are going to do the due diligence on Zain Telecom from next week. We will write to BSNL and MTNL to take part in the process along with us," Vavasi Managing Director Farid Afruddin told PTI.
BSNL Chairman and Managing Director Kuldeep Goyal was not available for comment.
Asked if both the PSUs don't respond to his calls, Afruddin said, "We are keeping all options open," indicating the company would try to rope in other Indian private telecom operators to acquire the 46 per cent stake of the Kuwait firm.
He said Vavasi had signed a transaction agreement with Zain Telecom on September 8 and one of the terms of the agreement was to find a telecom operator for which they approached BSNL and MTNL. The agreement period lasts till the 'early part' of January, he said.
As part of the deal being discussed, Zain shareholders will sell a 46% stake to the consortium at 2 dinars ($6.97) a share. The total deal size is estimated at $13.7 billion, which BSNL has already termed as "appear to be expensive".
Asked to comment on this, Afruddin said the accurate valuation can only be known after the due diligence.
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