VSNL to acquire Teleglobe

NEW YORK/MUMBAI: Videsh Sanchar Nigam Limited (VSNL), provider of international telecommunications and Internet services, has agreed to acquire NASDAQ-listed Teleglobe International Holdings Ltd, a provider of wholesale voice, data, IP and mobile signaling services.

The acquisition would be carried out through the amalgamation of Teleglobe with a VSNL subsidiary in Bermuda. The acquisition value would be $239 million, comprising assumption of debt and payment of $4.50 per share to Teleglobe shareholders.

The acquisition, subject to Teleglobe shareholder approval and government consents in various countries, 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 would also access more than 200 direct and bilateral agreements with leading voice carriers, many of which are the incumbent carriers within their countries or large international wireless service providers.

Headquartered in Hamilton, Bermuda Teleglobe also has more than 1,400 wholesale customers and carries over 13 billion minutes of voice traffic globally.

"VSNL's vision is to become a leading global player in wholesale voice and bandwidth and enterprise data services," said N Srinath, director on the board of VSNL.

Earlier this month, VSNL announced the completion of the TGN acquisition, undersea cable network that spans 60,000 kms and the continents of North America, Europe and Asia. TGN was previously owned and operated by Tyco.

"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," said Vinod Kumar, President, VSNL International.

Teleglobe had acquired Voice over Internet Protocol company ITXC Corp. in May 2004.