 The Cabinet Committee on Economic Affairs (CCEA) allowed TCIL to exit from its JV with Bharti’s Bharti Hexacom Ltd which offers services in Rajasthan and North East circles.
“For disinvestment from BHL, TCIL shall initiate process for appointment of advisors, legal advisors and valuers shortly. The company shall give a global Expression of Interest inviting sale of stake through two stage bidding process — technical and financial bids. Expenditure towards appointment of advisors, legal advisors and valuers shall be met by TCIL,” said a press statement.
TCIL has 30 % stake in the JV.
The decision to exit is due to Bharti Airtel’s not agreeing to pay dividends every year to TCIL saying that BHL was using all its internal generations for expansion of network to keep pace with the intense competition in the market. Additionally TCIL did not had any say in the management decisions of the JV.
Bharti also declined to get BHL listed on the stock exchange, a demand from TCIL which would have helped it exit the company at the right price. Bharti Airtel declined it as the listed company’s policy is not to get its subsidiaries listed, said a statement issued by the government.
|