New Delhi. Telecom and network firm Tejas Networks Ltd on Thursday said a unit of Tata Sons will acquire its controlling stake for about Rs 1,890 crore as part of a multi-stage deal. Tejas Network said in a statement that it has entered into a binding agreement with Pantone Finvest Limited, a subsidiary of Tata Sons (the holding firm of Tata Group).
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. Let us tell you that after this news Tejas network stock ran fast. The company’s stock has a gain of 4.98%. The stock reached Rs 244.35.
Know what is the company’s plan?
This will be followed by another 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 950 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.
In addition, preferential allotment of 1.55 crore warrants will also be made, 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.
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13 lakh equity shares will be acquired
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 acquisition of 4.03 crore equity shares of Tejas Network in accordance with the takeover rules of SEBI.
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What did Tata Sons say?
Commenting on the agreement, V Balakrishnan, President, Tejas Network said, “This partnership will provide us with the necessary financial resources, global links 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.
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