BSNL, MTNL eyeing controlling stake in Zain (Kuwait’s biggest telecom operator)
India’s state-owned phone companies, Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), are considering the purchase of a controlling stake in Kuwait’s biggest telecom operator, Zain, for about $14 billion (Rs67,900 crore).
S. Behura, secretary at the department of telecommunications (DoT), confirmed that the government-owned companies had been approached and said that BSNL and MTNL were yet to take a decision on the acquisition.
BSNL and MTNL are among a proposed group of investors led by the little-known Vavasi Group and Malaysia-based billionaire Syed Mokhtar Al-Bukhary, said another DoT official on condition of anonymity.
The Indian firms issued a press release saying no view had been taken on participation in the consortium buying the 46% stake in Zain. “However, MTNL and BSNL are always on the lookout to explore all types of overseas business opportunities to expand their operations,” they said.
BSNL and MTNL are yet to be formally brought on board, said Farid Arifuddin, managing director of Vavasi Telegence Pvt. Ltd. The state-owned firms have the money to spend on acquisitions. BSNL has cash reserves of around Rs37,000 crore ($7.6 billion) and MTNL has Rs11,000 crore ($2.22 billion), according to public information.
