MTML’s Future: Mauritius’ 3rd Mobile & Internet Operator to be Sold

Mauritius Telephone (Mauritius) Ltd, commonly known as MTML or Chili, is preparing to enter the market for sale. The decision was made by the board of directors of its parent company, Mahanagar Telephone Nigam Ltd (MTNL), on August 14, to divest all its shares in MTML.

This announcement has already been communicated to the Bombay Stock Exchange and the National Stock Exchange of India.

MTML is the third mobile and Internet operator in the Mauritian market, following Mauritius Telecom and Emtel.

Since its establishment in 2004, the company has attracted several tens of thousands of subscribers.

Despite offering more competitive pricing in certain areas, MTML has struggled to establish itself firmly within the local market.

The decision to sell MTML came amid MTNL’s looming financial crisis. The company was on the brink of insolvency, having nearly defaulted on payments during July and August.

To avert bankruptcy, MTNL sought intervention from its majority shareholder, the Indian government.

A significant portion of its debt, amounting to billions of Mauritian rupees, is backed by the Indian state.

This means that should MTNL default, the Indian government would be responsible for the outstanding debt, drawing from public funds.

Since June, MTNL has already defaulted on payments exceeding Rs 300 million, which are divided among five banks: Union Bank of India, State Bank of India, Bank of India, Punjab & Sind Bank, and UCO Bank.

Additionally, MTNL has requested more than Rs 600 million from the Indian government merely to cover the interest payments on state-guaranteed bonds for the current fiscal year.

A company source from MTML reassured that operations in Mauritius would continue despite the ongoing sale process.

“The decision has just been made, so it is too early to discuss a timeline or potential buyers,” the Defi Media source stated.

The news of MTML’s impending sale has sent shockwaves through the telecommunications sector.

An industry executive expressed surprise at the announcement, saying, “I never expected this sale.

I have no idea who might buy the shares. They may have a plan in place with the parent company.”

Didier Samfat, Director of Cybersecurity & Risks at Baker Tilly, commented on the changing economic model for telecommunications operators.

He noted, “We have seen a similar strategy with Emtel, which opened its capital to the public to better adapt to the new market conditions.”

In Mauritius, the sale of MTML must receive approval from the Information & Communication Technologies Authority.

As the situation unfolds, a pressing question remains for the coming weeks and months: who will take over MTML and its Chili brand?

Source: Defi Media