S Addepalli, Tata Comm senior vice-president said, "There is no liquidity or critical funding issue in the company. We have $300 million as cash on our books." Tata Communications had approached the government, a 26 per cent partner, for changes in the shareholder agreement to raise additional funds. It had sought permission to raise debt for expansion. The government, however, sought more information regarding the financial implications of the plan.
Tata Communications on Wednesday announced that it would acquire NYSE-listed Kaleyra, a global omnichannel integrated communication services provider with a set of proprietary platforms offering targeted personalisation through messaging, video, push notification, e-mails and voice-based services, and chatbots. The acquisition is an all cash deal. Tata Communications has agreed to acquire Kaleyra at a price per share of $7.25, for a total consideration to Kaleyra shareholders of approximately $100 million, besides the assumption of all outstanding debt.
Tata Communications said it has signed a partnership agreement with TE Data SAE for expanding its global VPN services to Egypt. TE Data SAE is a subsidiary of Telecom Egypt and is a leading P-based data communications carrier. Both the companies have interconnected their respective infrastructures, thus setting up multiple, network-to-network interconnection (NNI) points that would connect Tata Communications' European & Indian network hubs with TE Data's facilities in Egypt.
Tata Communications has invested around Rs 6.5 billion in developing its IoT business, which is being managed by some 75 executives over the past three years.
Tata Communications (formerly VSNL) has acquired a 50 per cent stake in Beijing-based telecom and IT services firm China Enterprise Communications for an undisclosed sum. The acquisition was done through its wholly owned subsidiary, Tata Communications International Pte.
The service will cover areas where no network is available and will be provided by INMARSAT, which has 14 satellites.
The incentive-based IHQ status, awarded by Singapore's state investment agency Economic Development Board, would also see Tata Communication increasing its Singapore workforce by 60 per cent to 200 over the next four years.
In 2008, Tata Communications had entered into a strategic partnership with BitGravity for licensing content delivery network technology and federation of networks of both entities.
The investment, which will be raised through internal accruals and various funding modes, is part of the company's $2 billion capex plans announced in 2008. The company had intended to make investments of $2 billion over the next three-year period.
Tata Communications on Monday said it had not received any communication from the Department of Telecommunications (DoT) on the issue of demerger of the company's surplus land.
The DoT is acting as a liaison between telecom companies and the CAG for an audit by the latter.
TCL wants to raise around Rs 10 billion through a rights issue, sources familiar with the developments said. This means the government will have to invest Rs 2.6 billion to retain its stake in the company, in case it approves the issue. The company needs to raise fresh equity for any fresh borrowing, as it has already reached the maximum limit of debt vis-a-vis its net worth, as stipulated under the shareholder agreement.
The promoters of large companies such as Wipro and Tata Communications will have to shell out more stake to comply with the public shareholding norms after the Sebi said capital issued outside India would not be accounted for in the calculation of "public shareholding".
As Reliance Communications (RCom) is struggling to sew up a deal with South African telecom major MTN, another Indian telecom service provider Tata Communications is all set to get a majority stake in South African telecom firm Neotel.
The IZO platform provides large business houses to jointly use their private IT network along with public network.
The partnership would allow Tata Indicom broadband customers to set up Wi-Fi hotspots at their premises instantly, the company said.
Investors brace up ahead of the key macrodata- IIP and CPI numbers due to be unveiled tomorrow.
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