India’s government is looking to sell its entire 26.12% stake in Tata Communications before the end of the current fiscal year.
The Economic Times reported that the Department of Investment and Public Asset Management plans to divest the stake through an Offer for Sale (OFS) mechanism, with the balance being offered to strategic partner Panatone Finvest. The transaction is scheduled for completion by 20th March 2021.
Speaking to LiveMint on condition of anonymity, a finance ministry official said: “Part of the stake will be sold through OFS and on the discovered price, rest of the stake will be sold to the Tatas. Though how much exactly will be sold through OFS has not been decided yet, the Cabinet Committee on Economic Affairs (CCEA) has approved selling up to 16% stake through OFS and remaining to the Tatas."
Formerly known as VSNL (Videsh Sanchar Nigam Limited), Tata Communications was a central public sector enterprise which was privatised in 2002, with Panatone Finvest taking a 25% stake and assuming management control over the unit.