VSNL gets Rs 750 cr from stake sale in Intelsat
The Financial Express — February 26, 2005

Tatas-owned Videsh Sanchar Nigam Ltd (VSNL) has informed The Stock Exchange, Mumbai (BSE) that the company has received an a mount of $169.03 million (Rs 750 crore) pursuant to sale of its entire holding in Bermuda-based satellite major, Intelsat Ltd. This will be reflected in the cur-rent quarter (January-April 2005) in VSNL's books. VSNLs 5.42% holding amounted to nine million Intelsat shares. The cost of acquiring these shares for VSNL was Rs 254 crore. VSNL, originally, was the founder member of Intelsats at and is a part of the consortium that was formed in 1964.

Following Intelsat's privatisation in 2001, VSNL received shares that translated to a 5.42% holding in Intelsat, Intelsat was required to make an initial public offering (IPO) which would given its share holders like VSNL the opportunity to sell their holdings. It was in August last year when Intelsat announced that it had signed an agreement to be acquired by Zeus Holdings for an enterprise value of $5 billion-the debt component was to the extent of $2 billion. The Intelsat shareholders were to receive $ 18.75 per share.