The Indian government will exit its entire 26.12% shareholding in Tata Communications Ltd., the company said in a regulatory filing late Friday.
Mode of sale
The government will sell a 16.12% stake through an offer-for-sale via stock exchanges.
The remaining shares will be sold to Tata Sons Pvt.’s investment arm Panatone Finvest Ltd. immediately after that sale.
Share Holdings
Currently, the government holds 26.12% stake in Tata Communications, Panatone Finvest Ltd 34.8% and Tata Sons 14.07%, respectively.
The government holds 7,44.46,885 equity shares of TCL, which, at last closing price of ₹1,289.75 per unit, stands at a value of over ₹9,601 crore.
BSE filing
“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.”
Flashback of deal
The deal was signed at the time of disinvestment by government in 2002 between inter alia and Panatone and to 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% 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).
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