Thursday, May 8, 2008

Govt. Considering Divesting Its 26pc Residual Stake In Tata Communications

The government is considering divesting its 26 per cent residual stake in Tata Communications Ltd (formerly VSNL), a deal that could fetch the exchequer about Rs 3,650 crore at current market prices. The government holds 26.12 per cent stake in Tata Communications Ltd and going by the market price the value of the residual stake is a little over Rs 3,650 crore as the company shares are changing hands at Rs 491 a share. Telecom Commission headed by Secretary Siddhartha Behura is meeting in New Delhi on May 8 to discuss divestment of the stake in the Tatas'' owned company, among other items on the agenda, an official in the Department of Telecom (DoT) said.

The meeting would also be attended by Finance Secretary D Subbarao and Secretary in the Department of Industrial Policy and Promotion (DIPP), besides other members of the Telecom Commission. Issue of surplus land Last year, Tatas had an option to acquire the remaining stake but the same could not be done as the two parties - government and Tatas - could not resolve the contentious issue of surplus land with the company. Tata Communications Ltd has 773 acres of prime land, which has been put in the surplus pool, and is valued at over Rs 1,000 crore.

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