VSNL to get Rs 786 cr from Intelsat sale

Videsh Sanchar Nigam is likely to receive around Rs 786 cr from the sale of its 5.42 per cent stake in US satellite company Intelsat.

Internet gateway and service provider Videsh Sanchar Nigam Ltd (VSNL) is likely to receive around Rs 786 crore ($169 million) from the sale of its 5.42 per cent stake in US satellite company, Intelsat Ltd.

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The sale would result in VSNL receiving capital gains of over Rs 530 crore, as Intelsat was acquired by VSNL in 2001 for Rs 254 crore, VSNL sources told PTI on Tuesday.

The satellite company is being paid $18.75 per share and the Tata company holds around nine million shares in Intelsat, sources said.

The sale of Intelsat is expected to be completed by December-end, they added.

The Bermuda-based satellite company is being acquired by a group of private investors for $5 billion in cash and assumption of debt.