MCI Worldcom (MCI) the US based telecom major is likely to take a 8% stake in Global Electronic Commerce Services (GECS) the e–commerce venture of Global Telesystems (GTL) for around $85 million to $ 90 million.
GTL holds close to 13% in GECS. And it has been looking out for a disinvesting this stake. The deal with MCI would be in addition to the sale of 5% stake to a consortium of investors. The GTL board has already accepted an offer of Rs.1.80 bn.
Apart from the stake held by GTL, another 46% is held by a Singapore based NRI group, while the remaining is held by the local promoters: Tirodkar and D’silva families.
GTL is to utilise the funds to acquire companies in software and e–commerce segments, besides retiring a part of its Rs. 3.14 bn debt. The company also stands to gain business from the deal since the consortium of investors led by the investment bank is to bring in e–commerce business of around $ 25 m.
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