The Hindu : Business : Tatas' bid to take controlling interest in SNO

Online edition of India's National Newspaper
Tuesday, Nov 16, 2004

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Tatas' bid to take controlling interest in SNO

MUMBAI, NOV. 15. A third unnamed bidder for the 26 per cent stake in South Africa's Second Network Operator (SNO) has `backed out', helping Tata group to inch closer to acquiring a controlling stake in SNO, a proposed telephony operator in that country.

"The backing off the unnamed bidder has brightened the group's prospects of clinching the deal as there are only two contestants — Tata Africa Holdings and Old Mutual Asset Managers (OMAM) — remaining," industry sources told PTI here today.

The Tata group has bid for a 26 per cent stake in SNO that would give the company a mandate to develop and operate National Long Distance (NLD) and fixed-line networks in that country.

Tata sources told PTI on Sunday that the group had placed its bids for SNO through its South African arm, Tata Africa Holdings, and was expected to invest over 3.5-5 billion rand in that country.

OMAM, a South African financial company, and the unnamed operator had also bid for SNO stake, which has been offered by the South African Government.

If the group wins the bid, the mandate of providing NLD and a fixed line operations in that country are expected to be undertaken by its subsidiary, Videsh Sanchar Nigam Ltd (VSNL), the sources said. VSNL would also get a considerable stake in the country's International Long Distance, they added. The Tata group is hopeful of winning the bid as it has a `considerable experience' in that country, they said.

— PTI

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