=DJ 2nd UPDATE: TCIL Invites Bids For 30% Stake In Bharti Hexacom

(Adds Bharti Hexacom valuation and analyst comment)

By R. Jai Krishna

Of DOW JONES NEWSWIRES

NEW DELHI (Dow Jones)--State-run Telecommunication Consultants of India Ltd., or TCIL, Wednesday invited expressions of interest for the sale of its entire 30% stake in Bharti Hexacom Ltd. through an open bidding process.

The remaining stake of Bharti Hexacom--which provides telephony and related services in the Rajasthan state and in India's northeastern region--is owned by Bharti Airtel Ltd. (532454.BY), which will get first right of refusal, TCIL said in a preliminary information document on its Web site.

Bharti Airtel, India's largest mobile services provider by subscribers, didn't offer any immediate comments.

A potential investor can make an offer for TCIL's stake as a sole bidder through a special purpose vehicle set up for the purchase, or by a consortium with an identified lead bidder, TCIL said.

TCIL is a telecommunications and engineering consultancy company.

The bidder should have a net worth of at least INR5.00 billion as per its audited annual accounts for the fiscal year that ended March 31, 2009, or assets under management of the same value, the notice said.

The last date for receiving bids is March 25.

An analyst at a Mumbai-based brokerage said Bharti Hexacom could be worth about INR50 billion-INR70 billion, based on different modes of valuations.

"Based on the overall valuation, TCIL's 30% stake is worth anywhere about INR13.40 billion-INR18.80 billion" excluding Bharti Hexacom's debt, said Nishna Biyani of Prabhudas Lilladher.

Deloitte Touche Tohmatsu India Pvt. Ltd. has been appointed as the financial adviser for the proposed sale process, TCIL said.

At the end of December, Bharti Hexacom had 9.61 million wireless users and about 35,000 subscribers for its telemedia services, such as broadband and wire line, in Rajasthan. It also had 1.31 million mobile phone users in the northeastern regions.

Bharti Hexacom had posted a profit of INR5.45 billion on revenue of INR23.25 billion in the fiscal year that ended March 31, 2009.

-By R.Jai Krishna, Dow Jones Newswires, +91.11.4356.3333; krishna.jai@dowjones.com

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(END) Dow Jones Newswires

March 03, 2010 08:39 ET (13:39 GMT)

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