Intelsat sell-off: VSNL to make $169 M

By SiliconIndia   |   Tuesday, 17 August 2004, 07:00 Hrs
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MUMBAI: Four private equity firms have agreed to acquire Bermuda-based Intelsat, the world's second-largest satellite operator, for a $3 billion cash deal, people close to the deal said. Intelsat, which carries voice, video and data traffic, became the third satellite company this year to fall into the hands of buyout firms after Apax Partners, Permira, Apollo Management and Madison Dearborn Partners sealed the transaction on Sunday night.

Internet gateway and service provider Videsh Sanchar Nigam Ltd (VSNL) is likely to receive around Rs 786 crore ($169 million) from the sale of its 5.42 per cent stake in the satellite company, Intelsat Ltd.

The sale would result in VSNL receiving capital gains of over Rs 530 crore, as Intelsat was acquired by VSNL in 2001 for Rs 254 crore, VSNL sources told a news agency on Tuesday.

The satellite company is being paid $18.75 per share and the Tata company holds around nine million shares in Intelsat, sources said.

The deal, which is expected to be announced later on Monday, comes after Kohlberg Kravis Roberts & Co. purchased DirectTV Groups' PanAmSat unit for $3.55 billion and then sold off 27 percent holdings each to Carlyle Group and Providence Equity Partners.

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