Tata Sons Are Taking Big Stake In Tejas Network
Tata Sons are taking a big stake in this company, the deal is above 1000 crores.
Telecom and network firm Tejas Network have said that a unit of Tata Sons will acquire a 26 percent stake for around Rs 1038 crore.
Tejas Network said in a statement that it has entered into an agreement with Pantone Finvest, a subsidiary of Tata Sons (Tata Group’s holding firm).
Under the agreement, the company will issue 1.94 crore equity shares to Pantone on a preferential basis at the rate of Rs 258 per share, totaling Rs 500 crore.
This will be followed by a further preferential allotment of 3.68 crore warrants, each of which can be converted into one share at the rate of Rs 258 per equity share, for a total amount of Rs crore, the company said.
This option can be exercised in one or several stages within 11 months from the date of issue of the warrant by Pantone, the statement said.
There will also be a preferential allotment of 1.55 crore warrants, each of which can be converted into shares at the rate of Rs 258 per equity share, totaling Rs 400 crore.
This option can be exercised within 18 months from the date of issue of the warrant.
Pantone will acquire 1.3 million equity shares of Tejas Network from certain personnel in the management at a rate not exceeding Rs 258 per equity share for a total amount of Rs 34 crore, the statement said.
Thereafter, Pantone and some other Tata group companies will make an open offer for the acquisition of 4.03 crore equity shares of Tejas Network in accordance with the takeover rules of SEBI.
Commenting on the agreement, V Balakrishnan, President, Tejas Network said, “This partnership will provide us with much needed financial resources, global ties, and a strong ecosystem.”
Saurabh Agarwal, Executive Director, Tata Sons said that Tejas Networks is a leading telecom and network company with a strong position in research and development.
“We look forward to working with Tejas Networks’ highly experienced management team and offering globally competitive wireline and wireless products,” he added.
