Stocks in focus: Tata Communications

Tata Communications on June 28, at 8.15 am has informed the exchanges in a press release stating that Liquid Telecom, a pan-African telecoms group, majority owned by Econet Wireless Global, has entered into an agreement to acquire South African communications network operator Neotel. Neotel is a subsidiary of the Company. The shareholders of Neotel have agreed for Liquid Telecom to acquire Neotel for Rs 6.55 billion. Liquid Telecom is partnering with Royal Bafokeng Holdings (RBH), a South African empowerment investment group, which has committed to take a 30 per cent equity stake in Neotel. The transaction, is subject to obtaining all affirmative approvals and other corporate approvals that may be required by the shareholders of Neotel and the regulatory approvals in South Africa.

Tata Communications is the major stake holder in Neotel, the shares could witness significant movement on June 28 trade. The shares of Tata Communications closed at Rs 449.60, up by 0.56 per cent. It is expected that the stock may open in green Tuesday (June 28). The shares' 52 week high/low stands at Rs 490.30/352.70.Trailing twelve-month P/E stands at 113.19, whereas the industry P/E is 21.67.

Tata Communications Limited, is a global telecom Indian business conglomerate of Tata Group. The company’s infrastructure includes sub-sea, terrestrial communications networks, data centers and it provides fixed line and wireless services. Apart from holding shares in Neotel (South Africa), Tata Communications Lanka Limited, (Sri Lanka) and United Telecom in Nepal. Tata Communications also holds stake in Tata Teleservices Limited, the 6th largest mobile service provider in India.