 "Tata Communications surges after Econet agrees to buy arm Neotel")
Tata Communications has surged 8% to Rs 485 on the BSE after Liquid Telecom, a pan-African telecom group, majority owned by Econet Wireless Global, has entered into an agreement to acquire South African communications network operator Neotel. Neotel is a subsidiary of the Company.
The stock is currently trading nears to its 52-week high of Rs 490 touched on July 24, 2015 during in intra-day trade.
The shareholders of Neotel – Tata Communications of India and minority shareholders led by Nexus Connexion – have agreed for Liquid Telecom to acquire Neotel for ZAR6.55 billion, Tata Communications said in a release.
Liquid Telecom is partnering with RBH, a South African empowerment investment group, which has committed to take a 30% equity stake in Neotel, it added.
The transaction is subject to approval by South African regulatory authorities and is expected to be completed later this financial year.
At 09:33 AM, the stock was up 7% at Rs 481 on the BSE, as compared to 0.17% rise in the S&P BSE Sensex. A combined 994,499 shares changed hands so far against an average sub 400,000 shares that were traded daily in past two weeks on the BSE and NSE.
The stock is currently trading nears to its 52-week high of Rs 490 touched on July 24, 2015 during in intra-day trade.
The shareholders of Neotel – Tata Communications of India and minority shareholders led by Nexus Connexion – have agreed for Liquid Telecom to acquire Neotel for ZAR6.55 billion, Tata Communications said in a release.
Liquid Telecom is partnering with RBH, a South African empowerment investment group, which has committed to take a 30% equity stake in Neotel, it added.
The transaction is subject to approval by South African regulatory authorities and is expected to be completed later this financial year.
At 09:33 AM, the stock was up 7% at Rs 481 on the BSE, as compared to 0.17% rise in the S&P BSE Sensex. A combined 994,499 shares changed hands so far against an average sub 400,000 shares that were traded daily in past two weeks on the BSE and NSE.