Lossmaking Indian operator Videocon Telecom is reportedly considering demerging into six separate group companies, one for each of its operating circles.
Parent company Videocon Industries is expected to evaluate the demerger proposal at its next board meeting at the end of the month, the Economic Times reported, citing sources.
If the company goes ahead with the separation plan it may then seek to pursue circle-by-circle deals to divest its operations in key markets.
Videocon Telecom operates in the circles of Uttar Pradesh East, Uttar Pradesh West, Bihar, Gujarat, Madhya Pradesh and Haryana - but is among the smallest mobile providers operating in each circle. In total the company has around 8 million customers.
A separate wholly-owned subsidiary of Videocon Industries, Quadrant Televentures, operates in the Punjab region and has around 3 million additional customers.
According to the report, Videocon Industries has been trying to progressively withdraw from the mobile industry for some time, and has been evaluating selling its spectrum holdings in key markets.
But the expected heavy tax cost of pursuing spectrum trading has prompted the company to explore the circle-specific M&A route instead.
The UP East, UP West, Bihar and Gujarat operations are expected to attract the most interest from potential buyers, the report states. The company has no immediate plans to exit the remaining circles.