Relax Tata Sons to sell 16.12% stake in Tata Communications through OFS

According to the regulator, the government will sell its entire stake in Tata Communications to Pantone Finvest Limited and the investment arm of Tata Son to Pantone Finvest Limited.

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Currently, the government holds 34.8% in Tata Communications, Pantone Finvest Limited and 14.07% in Tata Sons, respectively.

Tata Communications Ltd (Bandhan) said in a BSE filing on Friday.

The government holds 7,44.46,885 equity shares of TCL at a final closing price of 1,289.75 per unit, valued at more than 019,601 crore.

“As an initial step, the government will sell 4,59,46,885 equity shares making up 16.12% equity shareholding of the company through an offer-for-sale (OFS) through a stock exchange mechanism.

The filing stated that immediately after the OFS, the government would sell the remaining equity shares held in the company to Panatone.

The price of equity shares sold to Panton will be divided by the product of the number of equity shares sold under OFS and at the same price at which such equity shares are sold, according to the filing from the sale of total equity shares.

“Upon completion of the aforesaid transaction, the government will cease to be a shareholder of the company,” the filing stated.

It states that the government, Pantone, Tata Sons and Tata Tata Communications have entered into an amendment agreement on 13 February 2002 in relation to the amendment to the shareholders’ agreement.

In 2002 an agreement was entered into between the inter-government, government and Panton at the time of disinvestment by the government and filing terms and conditions for transfer of agreed percentage for Pantone of the shares of Tata Committance held by the government.

The government established VSNL in 1986 and divested its 25% stake in 2002 with the transfer of management control to the strategic partner, Panatone Finvest Limited. After strategic disinvestment, the company was renamed Tata Communications Ltd (TCL).