Shares of Tata Communications today surged almost 10 per cent after British telecom major Vodafone's South African subsidiary Vodacom reached an agreement to buy Neotel, controlled by the company.
Tata Communications Ltd's stock rose by 9.35 per cent to settle at Rs 333.30 on the BSE. During the day, the scrip soared 12 per cent to Rs 341.55.
At the NSE, the company's stock zoomed 9.89 per cent to end at Rs 334.50.
On the volume front, 7.21 lakh shares of the company changed hands at the BSE, while more than 44 lakh shares were traded at the NSE in intra-day session.
Vodafone's South African subsidiary Vodacom has reached an agreement to buy Neotel, controlled by Tata Communications, for 7 billion rand (around USD 676 million).
"The shareholders of Neotel and Vodacom SA announced today that they have favourably concluded an agreement on the commercial structure and terms to proceed for Vodacom to acquire 100 per cent of the shares of Neotel, valued at an enterprise value of ZAR 7.0 billion (about Rs 3,950 crore)," Tata Communications had said yesterday.
Neotel, South Africa's second-biggest fixed-line phone operator, is 68.5 per cent owned by Tata Communications. It competes with former state-owned service provider Telkom.