Tata Communications has rallied 11% to Rs 339 after the company said it has sealed a deal to sell its 67.3% stake in Neotel, its South African unit, for seven billion rand (Rs 3,950 crore) to Vodacom, a subsidiary of British telecom company Vodafone.
The shareholders of Neotel and Vodacom SA have announced on May 19 2014, that they have favorably concluded an agreement on the commercial structure and terms to proceed for Vodacom to acquire 100% of the shares of Neotel valued at an enterprise value of ZAR 7.0 billion, Tata Communications said in a statement.
The proceeds from the stake sale in Neotel will help Tata Communications to cut down its debt to some extent.
The stock opened at Rs 312 and hit a 52-week high of Rs 342 on BSE. The counter has seen huge trading activity with a combined 3.55 million shares changing hands till 1250 hours, against an average sub-one million shares that were traded daily in the past two weeks on the BSE and NSE.
The shareholders of Neotel and Vodacom SA have announced on May 19 2014, that they have favorably concluded an agreement on the commercial structure and terms to proceed for Vodacom to acquire 100% of the shares of Neotel valued at an enterprise value of ZAR 7.0 billion, Tata Communications said in a statement.
The proceeds from the stake sale in Neotel will help Tata Communications to cut down its debt to some extent.
The stock opened at Rs 312 and hit a 52-week high of Rs 342 on BSE. The counter has seen huge trading activity with a combined 3.55 million shares changing hands till 1250 hours, against an average sub-one million shares that were traded daily in the past two weeks on the BSE and NSE.
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