Telecom Consultants India Limited (TCIL) will shortly appoint SBI Capital Markets to provide advisory services for the former?s plan to exit from Bharti Hexacom, a joint venture with Bharti Airtel. The move to sell stake in Bharti Hexacom will allow TCIL to raise funds, which are required for meeting its increasing operating and capital expenditures for the ongoing projects.
Currently, TCIL holds a 30 per cent stake in Bharti Hexacom, while the remaining stake is held by Bharti Airtel. SBI Capital will be appointed to estimate the valuation of TCIL’s stake, based on which the Department of Telecommunications (DoT) will fix the reserve price. TCIL, along with SBI Capital, is likely to finalise the valuation by end-August 2014, after which it will seek DoT?s approval. The proposed stake sale has been fast tracked as TCIL requires funds to meet operational costs associated with the government projects the company is currently undertaking on a ‘build, own, operate and transfer’ basis.
Bharti Hexacom provides mobile services in Rajasthan and the Northeast circles and it has nearly 19.5 million customers.
