BPL Mobile in talks to sell up to 40% stake

India’s privately owned BPL Mobile Communications Ltd. is negotiating to sell up to 40 percent stake to a strategic partner to help boost its business in the world’s fastest growing cellular market, the company said, reports Reuters. India’s mobile services industry, with more than 50 million users and growing rapidly helped by rock-bottom call rates of about 2 U.S. cents a minute, has attracted investors from funds to large global service providers. “We have identified a few partners with whom we are in dialogue,” Chief Executive Officer Sandip Basu told a news conference. “The deal can happen any time.” BPL, which aims to invest $143 million on expansion this year, was in talks with at least three possible partners, including a foreign company, another official said. Basu said the strategic partner can buy a stake in BPL Cellular Holdings, the founder, or in BPL Mobile Communications that provides cellular services in Bombay, or in BPL Mobile Cellular Ltd., which operates in three other telecoms circles.
“Ideally the strategic partner could pick up stake in the holding company, but it could be in the operating companies as well,” Basu said. Indian founders own 60 percent of the holding company, with the remaining 40 percent held by funds such as Commonwealth Development Corp. and American International Group.
SOURCE:Telecompaper