VSNL to acquire Teleglobe, for $ 239 Million

(Re-updated at 05:20 pm)
Televisionpoint.com Team
Videsh Sanchar Nigam Limited, VSNL will acquire the Bermuda based, NASDAQ listed company, Teleglobe International Holdings LTD, for $ 239 Million, comprising assumption of debt and payment of $4.50 per share to Teleglobe shareholders. Teleglobe is in definite pact to be acquired by VSNL.

MR Vinod Kumar, President, VSNL International said, "By integrating Teleglobe into VSNL's operations, we would be in a position to provide carrier and enterprise customers with services that would complement our recent TGN acquisition and other growth initiatives in India and elsewhere, perfectly."

Teleglobe deal will make VSNL Tier-1 a global wholesale Voice, Data player, it would give VSNL access to an extensive global network that reaches more than 240 countries and territories with advanced voice, data and signaling capabilities and ownership interests or capacity in more than 80 subsea and terrestrial cables.

"VSNL's vision is to become a leading global player in wholesale voice and bandwidth and enterprise data services, This agreement, coupled with the TGN acquisition and recently announced plans to expand into new markets, will move us closer to the size and network breadth needed to achieve this goal." Said MR N Srinath, Director on the Board of VSNL.

Srinath added, "Teleglobe's high quality assets and established international expertise offered an ideal opportunity to enhance our telecommunications customer solutions over the long term. This strategic transaction creates a highly complementary combination of Teleglobe's extensive wholesale Voice VoIP/TDM network, Global Tier 1 IP Network, and deep customer base with VSNL's integrated telecom services to strengthen our position as a leading international telecoms provider."