NTT bought 35% stake of the company at a price of $225 million. Since then, NTT played a major role in providing technical and administrative assistance and training the employees of Sri Lanka Telecom. In March 2007, it went into discussion with Global Telecommunications about selling their stakes. The sale was stopped by a Fundamental Rights Application filed by a law-maker. Later, the
Yesterday, Usaha Tegas, via unit Global Telecommunications Holdings NV, paid a 22% premium – or 50.5 rupees per share – for the stake in Sri Lanka Telecom from Japan’s Nippon Telegraph and Telephone Corp (NTT). The premium was based on Sri Lanka Telecom’s stock closing price on Monday on the
Usaha Tegas also controls Maxis indirectly. Maxis also has stakes in telecom companies in Indonesia and India and talks of its interest to enter the Sri Lanka market have been on for more than a year.
According to Reuters, the deal valued Sri Lanka Telecom at US$844mil. Global Telecommunications would launch a mandatory offer for the remaining shares in Sri Lanka Telekom, of which 49.5% is owned by the government. The public holds the remaining 15.31%.
The sale saw Sri Lanka Telecom’s shares surge 16.4% to a record 48 rupees, which also gave a boost to the
Global Telecommunications Holdings is a
Sri Lanka Telecom is the country’s biggest fixed-line operator. It is also one of the biggest companies in the local stock exchange controlling 10% of the capitalization.The company acquired
Related articles:
» Sri Lanka: NTT goes out Hitachi comes in from SouthAsiaBiz
Famous Japanese electronics company, Hitachi, is planning to build a new factory in Sri Lanka that will produce industrial air conditions. Hitachi will invest $2 million to build the factory. ACMA Private Limited, the Asian distributor of Hitachi, held... [Read More]
Tracked on: April 13, 2008 10:11 AM | Permalink to Trackback