VSNL wraps up Tata Power broadband buyout

Internet and telecom major Videsh Sanchar Nigam (VSNL) has completed the acquisition Tata Power Company's (TPC) broadband unit ¿ Tata Power Broad Band (TPBB) ¿ for Rs 239 crore.

The acquisition would make TPBB a wholly-owned subsidiary of VSNL, which was offering broadband-based services under internet service provider (ISP) licences, VSNL informed the Bombay Stock Exchange on Monday.

TPBB, which was a wholly-owned subsidiary of TPC prior to the buy, had invested in creating a 400 km-long optical fibre backbone in Mumbai and Pune.

Divesting the business was to allow both the companies -- TPC and TPBB -- to unlock 'considerable shareholder value', Ratan N Tata, chairman, the Tata group, had said The VSNL share ended at Rs 386.25 on the NSE on Monday.