Tatas in talks to divest 20% TTSL stake

Aiming at an investment of over Rs 20,000 crore in two years in its telecom flagship Tata Teleservices (TTSL), the Tata group is understood to be in advance stages of negotiations for selling up to 20 per cent equity to a clutch of Indian and foreign investors.

Some of the deals for private placement of equity of the closely held telecom company of the group could fructify in coming weeks, sources said.

Potential investors that the group is talking to include Indian Telecom wizard C Sivasankaran and Tamasek Holding of Singapore, they added.

The move for part sale of equity through private placement route, however, does not reflect any possibility of Tata Teleservices going public, sources clarified.

Some of the investors are eyeing equity in Tata Teleservices to reap the benefit of early bird and the flow of resources could help the company pump additional funds for its proposed investment plan without burdening itself.

Earlier, the company also held discussion with the Korea Telecom for placement of about 26 per cent of equity but the deal could not materialise due to differences in the valuation on the company.

According to some estimates, the enterprise valuation of TTSL could be in the range of up to $3 billion. Company official declined to comment on this.