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Koshika Tele gets the Go-ahead

Jun 15, 1999

The Foreign Investment Promotion Board has given Koshika Telecom the green signal to replace its foreign partner, (Philippines Telecom Corporation (Philtel), with a consortium consisting of Lazard Brothers (UK), Alcatel (France), New World Telecom and a group of US based NRIs. Koshika provides cellular services in Uttar Pradesh (east and west circles), Bihar and Orrisa. As per the proposal, the company will issue fully convertible debentures (FCDs) worth Rs 1.2 bn to the proposed foreign partners, which on conversion will amount to 39% equity stake. A consortium of NRIs already holds 5% stake in the venture. On conversion Lazard will hold 22%, New World 10%, Alcatel 0.97% and the consortium of NRIs 6%.

Philtel, which had a 34% stake in Koshika, is pulling out of the venture because of some court cases.

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