The Hindu : Business : Russian firm's offer for Aircel

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Friday, Feb 04, 2005

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Russian firm's offer for Aircel

By Our Special Correspondent

CHENNAI, FEB. 3 . The Sterling Group has received offer from a Russian company for picking up a 49 per cent stake in Aircel Televentures Ltd., the holding company of its mobile telephone firms.

Confirming this, C. Sivasankaran, Chairman of the Group, told The Hindu that the Russian company AFK Sistema had offered $450 million for a 49 per cent stake in the holding company. He, however, insisted that the Sterling Group had not yet taken a view on the offer. With the Cabinet raising the foreign direct investment cap in the telecom sector to 74 per cent from the current 49 per cent, the Sterling Group would weigh the unfolding options before taking a final call on this issue, he hinted.

Mr. Sivasankaran always insisted Aircel Televentures was not averse to selling its cellular business if a "reasonable price'' was offered.

Aircel Televentures is a 100 per cent owner of Aircel and Aircel Cellular. Aircel is a mobile service provider in Tamil Nadu Circle. Aircel Cellular (formerly RPG Cellular and renamed since it taken over by the Sterling Group) provides mobile service in the Chennai region.

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