Bharti airtel withdraws its bid to purchase the government’s stake in Hexacom

Bharti airtel has withdrawn its bid to purchase the government?s 30 per cent stake in its subsidiary, Bharti Hexacom, according to news reports.

The government had demanded a substantial premium over the Rs 18 billion base price fixed by its consultant, Deloitte, and had also sought an additional six-month extension to conclude the sale process.

At the price fixed by Deloitte, Hexacom is worth over Rs 60 billion. Bharti airtel?s exit leaves only Punj Lloyd as the sole bidder. The government owns 30 per cent of Hexacom through the Telecom Consultants of India Limitd (TCIL) and Bharti airtel owns the rest. Bharti also has the first right of refusal to the remaining 30 per cent.

While five companies had submitted technical bids in 2010, only Bharti airtel and Punj Lloyd had put in financial bids in December 2010. In its communication to TCIL, Bharti airtel has said that its financial bid would be valid only until March 13 and has also demanded that its bank guarantees for its bid be returned after this date.