VSNL acquires Teleglobe

Indian telecom giants VSNL (Videsh Sanchar Nigam Limited) have announced that they have completed the acquisition of Teleglobe for USD 239 million. This means that VSNL is paying close to around USD 4.50 per share to Teleglobe shareholders and also taking the assumption of net debt.

VSNL informed the Bombay Stock Exchange about this deal and has said in a statement that Teleglobe’s current revenue levels, the acquisition could increase their annual revenues by up to 200 per cent in 2006-07.

The combined entity would own and operate one of the world’s largest international mobile, data, and voice networks with coverage to more than 240 countries and territories. This decision would also help VSNL’s customers with superior network reach, and scalability from a single partner worldwide for voice, data, and mobile services.

Executive Director N Srinath said in a statement on this news event: ”The Teleglobe acquisition is a critical step toward our vision to become a global industry leader providing customers with converged communications solutions. We are now a key player in the international wholesale market, supporting more than 1,400 customers.”