Videsh Sanchar Nigam Ltd. plans to acquire Direct Internet Ltd. and its wholly owned subsidiary Primus Telecommunications India Ltd. (PTIL) for an enterprise value of USD 16.7 million (750 million rupees). VSNL said it expected the deal to be completed in a few weeks.
PRIMUS Telecommunications Group Inc. holds 85 percent stake in Direct Internet indirectly, the remaining 15 percent being held by an Indian partner. The U.S. company, which provides Internet-based voice and data services, expects to receive around USD 14.4 million from the transaction.
PTIL provides Internet service to small and medium enterprises in Indian cities.
VSNL has been busy with buy-outs in the last one year. In February 2006, it acquired telecoms network service firm Direct Internet Ltd.
It acquired Tyco International's global under-sea fibre optic cable network unit in July 2005.
