Tata Comm shares surge 2% on selling arm Neotel for $293 mn

Tata Communications shares today rose more than 2 per cent after the company entered into an agreement to sell its South African unit Neotel Pty to Liquid Telecom.
The stock gained 2.44 per cent to settle at Rs 460.55 on BSE. During the intra-day trade, the scrip jumped 8.09 per cent to touch a high of Rs 486.
On NSE, it rose 1.56 per cent to Rs 457.05. It had touched a high of Rs 486 and a low of Rs 455.85.
On the volume front, 4.51 lakh shares of the company were traded at BSE and more than 35.47 lakh shares changed hands at NSE during the day.

In a BSE filing, Tata Communications said it will sell majority stake in South African internet-service provider Neotel Pty Ltd to telecommunications company Econet Wireless Global for about USD 293 million.
Liquid Telecom, majority of which is owned by Econet Wireless Global, entered into an agreement to acquire Neotel, the company said in a statement.
Tata Communications acquired 68.5 per cent controlling stake in Neotel in 2009.
The transaction, if approved by stakeholders of companies involved and regulatory authorities, will create the largest pan-African broadband network and business-to-business telecoms provider, the company said.