The Department of Telecommunications (DoT) plan to exit Bharti Hexacom has been put on hold, after the cabinet secretary KM Chandrasekhar asked it to revisit the sale process, say news reports.
The cabinet secretary has asked the DoT to re-evaluate the Rs 18 billion base price fixed by consultant Deloitte. This was because the government had received complaints from several members of Parliament and independent agencies that the base price was very low, since Hexacom had a turnover of over Rs 17 billion and profits of over Rs 4 billion in 2010.
The government owns 30 per cent stake in Bharti Hexacom through the Telecom Consultants of India Ltd (TCIL). Bharti airtel also has the first right of refusal to this stake.
Prior to this, Bharti airtel withdrew its bid to buy out the government’s 30 per cent stake, citing undue delay in the sale process. Bharti’s exit came after the government asked for 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.
