VSNL wraps up Primus for Rs 75 cr

Telecom & infotech firms hit the acquisition trail

Videsh Sanchar Nigam (VSNL) will acquire Direct Internet (DIL) and its wholly owned subsidiary Primus Telecommunications India (PTIL) for Rs 75 crore.

PTIL is a part of the US-based Primus Telecommunications Group, which is a full service, facilities-based global communications company offering a bundled portfolio of international and domestic voice, data and internet services.

The largest private wireless broadband internet access provider in India, PTIL provides fixed broadband wireless internet services to small and medium enterprises.The company claims to have 7 per cent market share in India within the six metros.

A VSNL statement at the Bombay Stock Exchange said that the completion of the transaction is subject to a number of conditions precedent and is expected to be over in next few weeks.

Late year, the internet and telecom major had completed the acquisition of Tata Power Company's broadband unit Tata Power Broad Band (TPBB) for Rs 239 crore. Earlier, it had signed an agreement to acquire Bermuda-registered Teleglobe International Holdings for $239 million.

This was its second overseas acquisition, after the Tyco Global Network takeover in November 2004 for $130 million.

The acquisition made VSNL a leading player in wholesale voice, bandwidth and enterprise data market. The company's scrip was up 0.59 per cent at Rs 490.85 on the Bombay Stock Exchange at the day's close.