“Immediately after the OFS, the Government shall sell the remaining equity shares held by it in the Company to Panatone at the per equity share price arrived at by dividing the aggregate of the product of the number of equity shares sold (under the OFS) and the corresponding price at which such equity share is sold, by the total number of equity shares sold (under the OFS),” Tata Communications said in an exchange filing late evening on Friday. Tata Communications’s shares closed 2.65% lower at Rs 1289.75 on Friday on BSE.
As on date, the Government owns 26.12% in Tata Communications, while Panatone Finvest (PFL) and Tata Sons Private Ltd. hold 34.80% and 14.07% respectively, aggregating to 48.87%. The government, PFL and Tata Sons are the promoters of the Company. VSNL was divested in 2002 by the government and management control of the company was passed on to the strategic partner PFL, a special purpose vehicle under the Tata Groups of Companies and a non-deposit taking core investment arm of Tata Sons.
At that time, surplus land measuring 773.13 acres located at five locations in four cities, namely, Pune, Kolkata, New Delhi and Chennai, out of a total of 1230.13 acres of land, was kept out of the purview of the disinvestment deal. PFL was to de-merge or hive off the land into a realty company, for which HPIL was created as a special purpose vehicle. That portion of the transaction has been completed. Panatone also holds over 30% in Tata Sons and
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