The Hindu Business Line : BPL accord: Will strategic partner arrive sooner?

With the out-of court settlement arrived between Mr T.P.G. Nambiar, founder of BPL Group, and his son-in-law, the potential foreign strategic partner from among five to six parties is expected to be narrowed down to one or two within two weeks, sources close to Mr Chandrashekhar indicated. Five or six companies, including Vodafone and DoCoMo and Essar Holdings, were reported to be in fray for a stake.

Following the settlement, Mr Nambiar withdrew the case filed against Mr Chandrashekhar before the Company Law Board, Chennai.

Sources said the settlement ending the year-long dispute on the stake sell in BPL Communications was brokered by members within the family. Under the settlement, a financial package had been agreed upon.

Mr Nambiar, who had a seven per cent stake in the company, would get an amount equivalent to his stake, sources said.

BPL Communications, which has 74 per cent stake in its operating subsidiary BPL Mobile and 100 per cent in BPL Cellular, has been valued at about Rs 4,600 crore by independent consultants. The company has a debt of about Rs 1,900 crore.

Sources indicate that Mr Nambiar would be paid seven per cent from the remaining amount of Rs 2,700 crore. Mr Nambiar had bought the stake in the BPL Communications through his private investment arm and not through BPL.

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