BSNL,MTNL positive towards Zain
Posted at October 6th, 2009 under BSNL, MTNL | No Comments »
Bsnl and MTNL after a long stand agreed on softening their hardness and showed it’s deep interest in buying Zain stakes of 46% which is being led by Indo-Malaysian consortium. The consortium is being led by India’s Vavasi Group and its’ partner as the Al-Bukhary Group of Malaysian billionaire Mr. Syed Mokhtar Al-Bukhary, is negotiating for 46% stake value of around Rs. 65,000crore.
“We have a proposal from Vavasi and we are examining that. We(BSNLand MTNL)want a minimum of 50% stake along with management control in the consortium. But right now we are in talks with the Vavasi led consortium to acquire a controlling stake,”BSNL Chairman Mr. Kuldip Goyal said. He also said that “If talks with Vavasi are successful, we will then join in doing due diligence on Zain, which will start shortly.”
Keeping in mind the downfall of MTNL in Sensex, BSNL is keen in buying majority of Zains’ stakes which has been rightly followed by the Vavasi Group. Mr. Farid Arifuddin, Managing Director of Vavasi Telegence said that the consortium would indirectly get a majority stake in Zain, but it is not clear if such an arrangement will be acceptable to BSNL and MTNL.
The decision of in-direct method of extracting Zains’ stakes is also because of the triggering issues in 49.5% of Kuwait’s Stock Exchange. Thus the Group had agreed in taking out 2Billion shares. There are about 9.96% shares which are with the treasury making a total share value of 59.46%. The Group is quite certain that a share value of around 50% got to be in its’ pocket.
A propasal has been sent to BSNL and MTNL according to Vavasi Group and it states that out of the total shares of 4.28billion, 2billion shares will be extracted. Out of which 50% will be given to BSNL and MTNL and the rest will be carried by the Group itself.
Companies like Vodafone Essar(India), Bharti Airtel and French media conglomerate Vivendi showed their respective dis-interest in buying African Zain’s stakes.
