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Government invites bids to sell 25 per cent of VSNL

The government has invited bids from companies with a minimum net worth of Rs 25 billion ($537.4 million) to sell a 25 per cent stake in state-run overseas telecommunications provider Videsh Sanchar Nigam Ltd (VSNL), media reports said on Tuesday.

"Companies, joint ventures or consortia interested in participating in the proposed divestment should have a combined net worth of Rs 25 billion.

"The net worth of only those promoters (main shareholders) will be counted who have at least 10 per cent stake in the equity of their company," newspaper reports said quoting the bid document.

The strategic partner selected may be required to make a public offer for further shares of VSNL, in accordance with the Securities and Exchange Board of India regulations (Sebi), the Business Standard newspaper said.

Earlier this month, the government announced its decision to sell 25 per cent stake in VSNL to a strategic partner as part of its strategy to jump-start its faltering privatisation programme.

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