Tata Sons arm to acquire controlling stake in Tejas Networks for nearly Rs 1,890 cr

Tata Sons arm to acquire controlling stake in Tejas Networks for nearly Rs 1,890 cr


Tejas Networks on Thursday said an arm of Tata Sons will acquire controlling stake in it for nearly ₹1,890 crore in a multi-step deal.

Shares of Tejas Networks on Thursday jumped 5% to hit its upper circuit after the telecom and network firm said an arm of Tata Sons will acquire controlling stake in it for nearly Rs 1,890 crore in a multi-step deal.

The stock rose by 4.99% to ₹246 — its upper circuit limit — on BSE.

On NSE, it gained 4.98% to ₹244.35 — its upper circuit.

Tejas Networks on Thursday said an arm of Tata Sons will acquire controlling stake in it for nearly ₹1,890 crore in a multi-step deal.

The company has executed definitive agreements with Panatone Finvest, a subsidiary of Tata Sons (Tata group holding firm), it said in a statement.

Rise in share prices

As part of the agreement, the company will make a preferential allotment of 1.94 crore equity shares at a price per equity share of ₹258 per share aggregating to ₹500 crore to Panatone.

There will also be another preferential allotment of 3.68 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of ₹258 per equity share aggregating to ₹950 crore.

Further, a preferential allotment of 1.55 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of ₹258 per equity share aggregating to ₹400 crore, will also be made.

Panatone will also acquire up to 13 lakh equity shares of the Tejas Networks from certain personnel in management, at a price not exceeding ₹258 per equity share aggregating to ₹34 crore, subject to such terms and conditions as mutually agreed between the parties, the statement said.

Subsequently, Panatone and other certain companies of the Tata group will make an open offer to acquire up to 4.03 crore equity shares of Tejas Networks representing 26% of the emerging voting capital in accordance with SEBI Takeover Regulations, the company said.



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