Tata Communications To Drop Tata Teleservices Acquisition Plan

Tata Communications, a Tata group company, is expected to scrap the plan to acquire Tata Teleservices’ enterprise business, Economic Times reported.

As per the media report, Tata Sons, a Tata group company, has informally apprised the government that the group it not planning for a deal now and would like to instead concentrate on strengthening the balance sheet of Tata Communications.

The government owned 26% shares in Tata Communications, earlier known as Videsh Sanchar Nigam Ltd.

Tata Teleservices had ~Rs36,000cr of debt on its books as of March 2018 end, most of it on account of its consumer mobility business, including about Rs10,000cr it owes the government. At least Rs20,000cr of the balance Rs26,000cr has already been repaid by Tata Sons, the report said.

Apparently, the news has brought a relief to the department of telecommunications (DoT), who has been worried about payment of Tata Teleservices’ dues, and how much of Teleservices’ debt will Tata Communications, which itself has a debt of over Rs7,500cr, take on.

Meanwhile, Tata Teleservices (Maharashtra) share price is currently at Rs4.10, down by Rs0.1 or 2.38% from its previous closing of Rs4.20 on the BSE. The scrip opened at Rs4.29 and has touched a high and low of Rs4.29 and Rs4.03, respectively. So far, 7,95,381 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs821.07cr.

Besides, Tata Communications share price is currently at Rs530.65, up by Rs7.4 or 1.41% from its previous closing of Rs523.25 on the BSE.
The scrip opened at Rs527.85 and has touched a high and low of Rs533 and Rs523.85, respectively. So far, 1,13,992 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs14,912.63cr. – India Info Line