Mumbai: MTNL is all set to acquire Sri Lankan fixed line operator Suntel and has sent a high-level delegation to start technical assessment of the company. The delegation will be in Sri Lanka for four days to conduct due diligence along with Suntel officials. MTNL is believed to have emerged as the highest bidder for Suntel with a bid of between $160-180 million. If the deal goes through, this will be the NYSE-listed Indian company''s first acquisition. It will also give MTNL a foothold in Sri Lanka''s fast-growing telecom market. The Colombo-based company offers fixed line service on CDMA based technology''s WLL platform. All its key shareholders want to exit, sources said.
Nordic company Telia AB is Suntel''s top shareholder with 55% stake through its holding firm Overseas Telecom AB. The remaining stake is held by Sri Lanka''s Metrocorp, the National Development Bank of Sri Lanka, Townsend of Hong Kong and International Finance Corporation.
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