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Pacific Internet likelyto be valued at $15 m
Sibabrata Das
Mumbai, Sept 26: Pacific Internet India is expected to be valued at $15 million even as Star TV has decided to pick up 35 per cent stake in an all-cash deal in the company. While Pacific Internet will hold 35 per cent in the new joint venture narrow-band Internet services company, the balance 30 per cent will be held by the Thakrals. Star TV and Pacific Internet met on Tuesday to detail out the structure. Though negotiations are still on, the shareholding structure has more or less been settled, sources close to the deal said. "While Star TV and Pacific Internet will hold the same equity, the Thakrals will be a minority partner in a tripartite deal," the source said.Star TV is not going to have a stake in the Singapore company but in the Indian operations of Pacific Internet, the source clarified. Pacific Internet admitted that it is "currently in negotiations with Star TV for the parties to explore Internet access opportunities in India together." The "details of the arrangement are being worked out," the company said. Star TV's acquisition price would be in the approximate range of $5.25 million, a source close to the deal said. The valuation of Pacific Internet would be much lower than what Star paid for acquiring a 26 per cent stake in Hathway at close to $60 million. "The valuation is low because Pacific Internet has not made much headway in the country. Though it launched early this year, it has hardly 20,000 subscribers," he added. Due diligence will be done after the commercial negotiations are over. The deal is expected to be announced soon. The joint venture company will be exclusively for narrow band services. Star TV has already picked up 26 per cent stake in Hathway Cable & Datacom and has an exclusive agreement for broadband services. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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