The Hindu Business Line : Spectranet on the block again

Earlier in 2005 a deal between Punj Lloyd and the Bharti group to hive off Spectranet had fallen through because the two companies were not able to agree on the valuation. While Spectranet at that time had said that it has turned down the Bharti offer, the Bharti Group had maintained that its assessment of the valuation of the company is lower than Spectranet’s expectations.

Talking to reporters the Chairman of Punj Lloyd said that “I am looking for a buyer for Spectranet.”

“Earlier we had an offer valued at more than $500 million but before the deal could go through it came down to below $100 million,” Mr Punj said.

“Spectranet is currently making cash profit but I have not visited the facility in the last seven years,” he said.

Spectranet has a book value of more than Rs 80 crore, he said.

The company was among the first few private network convergence services provider in the country and was also among the first few private sector companies in South East Asia with a live commissioned network of optic fibre cable, according to the company Web Site.

Punj Lloyds bid to hive off its ISP division is primarily because the group seeks to focus on its core area of businesses such as pipe line and civil works. The company has also tied up with Singapore Technologies Kinetic to enter into defence production.

It is also one of the partners of Pipavav port and is qualified to bid for the Kolkata and Chennai airports, he said.

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