The Hindu Business Line : Nahata, Dhoot bury the hatchet over Datacom

New Delhi, Jan. 1 The feud between Mr Mahendra Nahata, Chairman of Himachal Futuristic Communications Ltd, and Videocon promoters Dhoot family over control of Datacom is finally close to a resolution.

As part of the compromise formula being worked out, HFCL’s telecom business in the Punjab circle may be merged with Datacom even as the Dhoots are likely to agree to buy out Nahata’s 36 per cent equity stake in Datacom.

Mr Nahata on Wednesday had confirmed that the two sides are discussing the modalities of the deal and a solution was possible soon. He, however, did not give any details. Mr R.N. Dhoot, Managing Director, Datacom, said that there could be good news in this regard in the New Year.

Datacom was among the new players which got licences to offer mobile services across the 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. 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.

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

Sources close to the company said that the two promoters have put the discussions on a fast track realising that the dispute was hurting the interest of Datacom. The exact details of the compromise deal could be made public within a month, they said.

Related Stories:
Himachal Futuristics, Videocon spar over Datacom
Datacom gets suitors for stake sale

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