State-run Bharat Sanchar Nigam (BSNL) today said it has decided to drop its plans to acquire a majority stake in Zambia Telecommunications (Zamtel).
BSNL, which has been looking for foreign acquisitions for long, has decided not to pursue the deal any further and instead focus on its domestic operations.
When contacted BSNL Chairman and Managing Director Kuldeep Goyal said: "We have decided to focus on our domestic operations. The board has decided not to place the final bid for acquiring Zamtel."
BSNL had put in a bid for acquiring a majority stake in Zamtel and cleared two rounds. It was shortlisted along with three other global players for submitting the final bid.
The last date for submitting the binding bid for Zamtel was March 13, but BSNL has decided to pull out of the race.
Three suitors have finally submitted binding offers to buy majority control of Zambia's fixed-line phone company, the Zambia Development Agency said.
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That leaves Libya's LAP Greencom along with LAP Green Networks, Angola's Unitel and Angola Cables, and Russia's Vimpel Communications together with Altimo Holdings in the bid.
The agency said the announcement of the preferred bidder is expected to be made on March 29.
The ZDA had in mid-September said it was selling Zamtel, which also owns mobile-phone operator Cell-Z and Internet service provider Zamtel Online.
According to sources, the Department of Telecom was not in favour of the deal as BSNL was facing pressure on its revenues here while Zamtel is also a loss-making unit.
The Zambian government, which owns Zamtel, is looking at selling up to 75 per cent stake in the telco.
The decision to drop out of the race for Zamtel was taken at a BSNL board meeting last week, sources said.