CG looking to complete full STM Telecom buyout by April, sources say

22 Mar 2013

Nepal’s Chaudhary Group (CG), which earlier this month acquired an 80% stake in STM Telecom from US-based STM Communications Service Inc via its wholly owned subsidiary CG Telecom, now plans to complete a full takeover by early April 2013, according to TMT Finance which quotes unnamed sources. CG has set up a team of former CEOs of banks, telcos and advisory companies in Nepal to advise on the takeover, with the source claiming: ‘They have an internal team but CG has been receiving proposals from foreign banks and advisory firms, which they are currently weighing up. They are likely to hire foreign firms for the next phase of the acquisition’.

STM, which operates under the brand name Gramintel, has been providing telecoms services to around 5,500 subscribers across 628 village development committees (VDCs) in 52 districts. CG says that going forward its new CG Telecom subsidiary will focus on villages‚ continuing the legacy of Gramintel, but that it will also look to explore opportunities in urban areas. CG managing director Nirvana Chaudhary, added: ‘CG Telecom will continue using the Gramintel brand and [will] also introduce CGTel for its services in various areas’. CG Telecom plans to invest around NPR2 billion (USD23.3 million) to expand its services, including the launch of GSM mobile services, and will buy out the shares of AR Investment in STM Telecom to become its 100% shareholder in time for its relaunch under the new brand.

Nepal, CG Telecom (incl. STM Telecom Sanchar)