Pacific Internet, Hinduja Talks On Venture Collapse

The joint venture talks between Internet service provider (ISP) Pacific Internet and the Thakral group on the one hand, and the Hinduja Group on the other have broken down.

Pacific and the Thakral group jointly announced yesterday that they have "discontinued discussions to form a joint venture with the Hinduja group to provide broadband Internet access to the Indian market via the Hinduja cable network."

A Pacific Internet statement said the negotiations were discontinued as the two could not agree with the Hindujas on key terms of the joint venture. "Pacific Internet and Thakral, which currently operate ISPs in Mumbai, Bangalore and New Delhi, will continue to stay on track with plans to expand their Internet access business in India," it said.

 

The statement further said after the break-up, the Hinduja group would continue independent expansion of its Internet businesses.

The Hinduja group would have been represented by In2Cable.com. The new company was to be called Pacific Internet India. The new company would have provided Internet narrowband, dial-up services and broadband connectivity over the Hinduja's fibre optic network in the city.

The initial investment would have been close to $20 million and the authorised capital of the joint venture was fixed at $100 million. The joint venture would be held 37 per cent each by the Hindujas and Pacific Internet, respectively, while the balance would rest with the Thakral group.

Pacific Internet is a Nasdaq-listed ISP that ventured into India some months ago. It has a presence in Singapore, Hong Kong, the Philippines, Australia, Thailand and India.

The Thakral group is engaged in the distribution and assembly of consumer electronic products, distribution of IT hardware, software development and consultancy services, the trading and manufacture of textiles, assembly of consumer electronic products, hotel management and investment, real estate development and financial and consultancy services.