scorecardresearch
Follow Us:
Friday, April 16, 2021

Govt to sell 16.12 pc stake in Tata Comm through OFS, rest to Tata Sons arm

Currently, the government holds 26.12 per cent stake in Tata Communications, Panatone Finvest Ltd 34.8 per cent and Tata Sons 14.07 per cent, respectively.

By: PTI | New Delhi |
Updated: March 13, 2021 2:27:56 am
Tata communicationsTata Steel was quoting 5.89 per cent higher, Tata Communications 5.23 per cent, Tata Motors 4.80 per cent and Tata Power Company 4.82 per cent on BSE. (Photographer: Dhiraj Singh/Bloomberg/File)

The government will sell its entire stake in Tata Communications through an offer for sale and the rest to Tata Son’s investment arm Panatone Finvest Ltd, according to a regulatory filing.

Currently, the government holds 26.12 per cent stake in Tata Communications, Panatone Finvest Ltd 34.8 per cent and Tata Sons 14.07 per cent, respectively.

“Tata Communications Ltd has today (Friday) signed an amendment agreement between the President of India, Panatone Finvest Ltd, Tata Sons Private Ltd and the company for sale of the entire shareholding in the company by the Government of India,” Tata Communications Ltd (TCL) said in the BSE filing on Friday.

The government holds 7,44.46,885 equity shares of TCL, which, at last closing price of Rs 1,289.75 per unit, stands at a value of over Rs 9,601 crore.

“As an initial step, the government will sell up to 4,59,46,885 equity shares forming 16.12 per cent equity shareholding of the company through an offer-for-sale (OFS) through the stock exchange mechanism.

“Immediately after the OFS, the government shall sell the remaining equity shares held by it in the company to Panatone,” the filing said.

The price of equity shares to be sold to Panatone will be arrived at by dividing aggregate of the product of the number of equity shares sold under the OFS and the corresponding price at which such equity share is sold, by the total number of equity shares sold, according to the filing.

“Upon completion of aforesaid transactions, the government will cease to be a shareholder of the company,” the filing said.
It added that the government, Panatone, Tata Sons and Tata Comm have entered into an amendment agreement with regard to amending the shareholders’ agreement dated February 13, 2002.

The pact was entered into at the time of disinvestment by the government in 2002 between inter alia, the government and Panatone and to record the terms and conditions for transfer of the agreed percentage of shares of Tata Commmunications held by the government to Panatone.

The government established VSNL in 1986 and divested its 25 per cent stake in 2002 along with transfer of management control to Panatone Finvest Ltd, the strategic partner. Subsequent to the strategic disinvestment, the name of the company was changed to Tata Communications Ltd (TCL)

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
Advertisement
Advertisement
Advertisement
Advertisement
x