IMG meeting on VSNL divestment today

Neeraj Jha / Agencies

Mumbai, May 17: AN inter-ministerial group (IMG) meeting on Videsh Sanchar Nigam Ltd (VSNL) disinvestment is scheduled to be held in Mumbai on Friday to take stock of the progress made with regard to sale of 25 per cent equity to a strategic investor. Also on the agenda is the company’s proposed employee stock option plan (ESOP). The issue of dividend (Rs 1,000 on a share of Rs 10 each) is also likely to figure in tomorrow’s meeting.

According to sources in VSNL, the meeting will be attended by senior official from department of disinvestment, VSNL and the department of telecommunications (DoT), besides members from the SBI Capital Markets and Credit Suisse First Boston (CSFB), VSNL’s global advisors for its disinvestment.

The Department of Disinvestment team will comprises DoD secretary Pradeep Baijal, joint secretary KK Sharma and deputy secretary Pushkar Bhatnagar. While DoT will be represented by its senior director general KN Singh. The DoD officials are also likely to interact with VSNL Union members on the ongoing disinvestment process.

According to official sources, the meeting would take stock of the entire disinvestment process with regard to circulation of information memorandum and confidentiality agreements, besides draft shareholders agreement which is scheduled to be circulated to various bidders for comments, soon.

The government is in the process of offloading 25 per centstake in VSNL to a strategic partner along with the management control in the highly profit-making PSU, while earmarking 1.97 per cent to the employees through the stock option.