MTNL close to acquiring Lanka outfit

MTNL is close to buying Sri Lankan fixed-line operator Suntel and has sent a high-level delegation to start technical assessment of the company.

The delegation has left for Sri Lanka to hold discussions with Suntel on technical assessment, which is a pre-requisite to formalise the deal, company sources said.

The delegation will be in the country for four days to conduct due diligence along with Suntel officials, they said. MTNL is believed to have emerged as the highest bidder for Suntel with a bid of between $160 million and $180 million.

If the deal goes through, this will be the NYSE-listed company’s first acquisition. It will also give MTNL a foothold in Sri Lanka’s fast-growing telecom market.

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