Turkcell Looking to Buy Controlling Stake in Indian Mobile Network

Turkey's dominant telco, Turkcell is reported to have joined in the bidding to take a stake in another of India's new mobile network operators, Datacom Solutions. The deal, which is reported to be for a controlling 51% stake is expected to put the enterprise value of the company at nearly $2.2 billion.

The company has been in talks with several Gulf companies over the past few months, including Qatar Telecom and Etisalat to seek funding and expertise for the network rollout.

Sources told the Economic Times that the Turkish company wants the Indian promoters - Dhoots of Videocon and Mahendra Nahata, chairman of Himachal Futuristic Communications (HFCL) group - to resolve their differences before signing the deal. The two founders have been in dispute since being awarded their licenses earlier this year over the company management plan.

"Dhoots will have to buy out Mr Nahata, and Turkcell will then enter the company," the sources told the newspaper.

Datacom was awarded GSM licenses in all of India's 22 license circles and has already been granted radio spectrum in 13 of the circles. The firm has previously said that it was planning a US$2.8 billion GSM tender, but nothing seems to have happened since that was announced.

On the web: Economic Times

Posted to the site on 31st October 2008