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Friday, September 17, 2021

Tata Sons arm to buy 43.3% stake in Tejas Network for Rs 1,850 cr

The total cost of acquisition will touch Rs 2,850 crore if the public offer, by Panatone and other companies of the Tata group, is taken into consideration.

By: ENS Economic Bureau | Mumbai |
Updated: July 30, 2021 12:36:11 am
The company has executed definitive agreements with Panatone Finvest, a subsidiary of Tata Sons (Tata group holding firm). [REUTERS]

Tata Sons subsidiary Panatone Finvest Ltd has proposed to buy a 43.3 per cent stake in Tejas Networks, a global optical, broadband and data networking products company, for around Rs 1,850 crore.

Panatone and other companies of the Tata group would make a public announcement to acquire up to 4.03 crore equity shares of Tejas Networks representing 26 per cent of the emerging voting capital in accordance with Sebi Takeover Regulations. The total cost of acquisition will touch Rs 2,850 crore if the public offer is taken into consideration.

Tejas shares rose 5 per cent to Rs 246 on the BSE on Thursday.

Tejas will make preferential allotment of 1.94 crore equity shares at a price per equity share of Rs 258 per share, aggregating to Rs 500 crore.

There will also be preferential allotment of 3.68 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of Rs 258 per equity share aggregating to Rs 950 crore, which may be exercised by Panatone in one or more tranches during the period commencing from the date of allotment of the warrants until expiry of 11 months from the date of allotment.
Sanjay Nayak will continue as MD and CEO of Tejas.

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