VSNL sells 10% stake in Lankan arm

Telecom and Internet major Videsh Sanchar Nigam (VSNL) has sold off 10 per cent stake in its wholly owned subsidiary VSNL Lanka to Sunshine Holdings for Rs 7.5 crore. The Tata group company has sold 15.17 lakh shares to the Sri Lankan business conglomerate.

Sunshine Holdings has the option to acquire an additional 5 per cent of VSNL Lanka's share capital in the next 12 months at fair market value, VSNL said in a statement.

"This partnership with Sunshine Holdings will enable VSNL Lanka to capitalise on our partner's intimate knowledge and experience in the Sri Lankan market. This is also part of our attempt to unlock value for our shareholders in an appropriate manner," VSNL Chief Financial Officer Rajiv Dhar said in a statement today.

Sunshine Holdings has interests in pharmaceuticals, travel and tourism, tea and rubber cultivation and managing portfolio investments. The company's Managing Director Vish Govindasamy has been director of VSNL Lanka since its inception.

"We have been working closely with VSNL in Lanka and this investment reiterates our commitment to this partnership. We believe that VSNL Lanka will be able to achieve a strong position in the Sri Lanka telecom market," Govindasamy said.

VSNL Lanka offers international voice and data services in Sri Lanka through an external gateway operator's licence since February 2004. VSNL Lanka would continue to play a leading role in the fast growing Sri Lankan market for international voice and data services.