Tata Communications share price gained as much as 2.29 per cent on Tuesday after the company informed BSE that its South Africa-based subsidiary Neotel and Vodacom SA have confirmed that they have concluded a modified transaction in terms of which Vodacom will acquire the majority of Neotel’s assets related to its fixed line business as a going concern, excluding, inter-alia, Neotel’s licenses (spectrum, ECN, ECNS).
At 12.56 pm, Tata Communications was trading 0.84 per cent up at Rs 415. The scrip opened at Rs 409.40 and had touched a high and low of Rs 421 and Rs 409.30, respectively, in trade. Sensex was down 130.05 points at 25,399.06.
Later, the scrip closed 0.66 per cent up at Rs 414.25.
As part of this agreement, Neotel will offer a roaming arrangement to all the mobile network operators, including Vodacom.
In a release, Tata Communications said, “In line with the postponement requested from the Competition Tribunal on November 23, Vodacom South Africa and Neotel have today submitted to the Competition Tribunal the signed transaction documentation in respect of the restructured transaction. The Competition Tribunal will consider it at a pre-hearing set down for Thursday, December 10.”
The promoters holding in Tata Communications stood at 74.99 per cent while institutions and non-Institutions held 18.09 per cent and 6.92 per cent, respectively.
In the past one year, the share price of Tata Communications slid 8.02 per cent till December 7. The benchmark index Sensex fell 9.21 per cent during the same period.
For the quarter ended September 2015, Tata Communications posted a consolidated net profit of Rs 6.02 crore, down 93.48 per cent, against Rs 92.39 crore in the corresponding quarter a year ago.