The transaction values the company that specialises in CDMA-technology services and has plans to launch GSM services at Rs 50,269 crore.
Under stock exchange rules, both Tatas and DoCoMo would jointly make an open offer to acquire a 20 per cent stake in Tata Teleservices (Maharashtra Ltd), a listed subsidiary of TTSL which operates in Maharashtra and Goa. The open offer would be made at around Rs 22-23 per share at a premium of 27 per cent from the current levels, a source close to the Tata Group said.
TTSL would leverage DoCoMo’s expertise in the development and delivery of value-added services, where DoCoMo is a firmly established market leader, TTSL said in a statement.
The Tatas would use the funds to increase the network infrastructure and strategic presence across the country and also for its GSM roll-out. TTSL plans to invest more than Rs 6,000 crore for its GSM operations and another Rs 2,000 crore to expand its CDMA operations. Tata Teleservices, with more than 30 million subscribers, is the sixth largest telecom service provider in the country.
The deal with DoCoMo would be the second round of equity dilution in Tata Teleservices. Earlier in 2006, TTSL had sold close to 17 per cent stake to Singapore’s Temasek and C. Sivasankaran, founder of South-based service provider Aircel.
Courtesy: hindustantimes.com
