The Hindu Business Line : Dispute between promoters delays Datacom’s launch plans

New Delhi, Oct. 18 Desperate to get the launch plans back on track, Videocon’s Dhoot family and Mr Mahendra Nahata of Himachal Futuristic Communications Ltd seem to be working towards a compromise over Datacom.

The dispute between the two promoters has not only delayed the launch of Datacom’s cellular services by at least 4 months but also driven away prospective international investors from picking up a stake in the company.

Etisalat, which had recently picked 45 per cent stake in another new telecom company — Swan — had earlier shown interest in Datacom. Similarly, Telenor, which is now reportedly talking with Unitech to acquire a stake in its new telecom venture, was also close to striking a deal with Datacom. However, the spat between the Indian promoters is keeping away the international investors.

The company has also lost its Chief Executive Officer, Mr Ravi Sharma, who quit the company on the grounds that the dispute was delaying Datacom’s business decisions.

According to sources, Mr Sharma did not quit due to any differences with the Dhoots but because he was not able to move ahead with the operations.

Pushing back dates

Mr Sharma had earlier said that Datacom would launch its services by December this year. However, the company has not been able to even order the equipment for setting up the infrastructure due to the dispute between promoters. Sources said the launch may now happen only in May 2009, that too if the feud gets resolved quickly. According to sources within the company, fearing further losses, the Dhoots and Mr Nahata may have agreed to renegotiate an exit route to the latter, which includes giving over Rs 1,500 crore for his 36 per cent stake in the company.

‘Verbal pact’

However, sources close to the Nahata camp said that the agreement was only verbal at this stage. “Until and unless Mr Nahata gets the money, which he is asking for his stake, one cannot say that there is a deal. However, there may be some verbal commitments which have been given,” said a source.

When contacted, Mr Venugopal Dhoot, Chairman, Videocon, refused to comment while Mr Nahata is travelling out of country.

Datacom was initially owned by Mr Nahata-promoted Jumbo Techno Services. But when Videocon failed to get a licence from the Government, it picked up 64 per cent stake in Datacom.

The dispute began after Mr Nahata alleged that the Dhoots were not fulfilling their commitments made during the initial agreement.

The Dhoots also appointed Mr Rajkumar Dhoot to run the mobile service firm. This was opposed by Mr Nahata.

Sources in Nahata’s camp said that Mr Dhoot had promised to pump in money into the company as equity but later offered a loan to finance the mobile services project.

Industry watchers said that the promoters will have to resolve their conflict quickly so that it can raise enough funds to participate in the 3G auctions scheduled for December.

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Dispute between promoters delays Datacom’s launch plans

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