Tata Comm gains after subsidiary receives approval from ICASA for its acquisition

Tata Communications rose 4.94% to Rs 662 at 9:45 IST on BSE after the company's subsidiary, Neotel received unconditional approval from ICASA for its acquisition by Liquid Telecom.

The announcement was made after market hours yesterday, 15 December 2016.

Meanwhile, the S&P BSE Senses was up 3.87 points or 0.01% at 26,522.94.

On the BSE, 65,013 shares were traded on the counter as against the average daily volumes of 1.25 lakh shares in the past one quarter. The stock had hit a high of Rs 669.65 and a low of Rs 635 so far during the day.

Tata Communications said that this is another step towards closing of the transaction.

Tata Communications had announced on 28 June 2016, that Liquid Telecom, a pan-African telecoms group, majority owned by Econet Wireless Global, had entered into an agreement to acquire South African communications network operator Neotel, which is a subsidiary of Tata Communications.

Thereafter, on 8 November 2016, Tata Communications had informed that the board of directors of the company at a meeting held on 8 November 2016 recommended to the shareholders of Neotel, the sale of the entire shareholding in Neotel, subject to approval of the Independent Communications Authority of South Africa (ICASA).

Tata Communications' consolidated net profit tanked 64.4% to Rs 39.96 crore on 0.2% decline in net sales to Rs 4509.09 crore in Q2 September 2016 over Q2 September 2015.

Tata Communications owns and operates the world's largest and most advanced subsea fibre cable network.

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