Panatone Finvest, which is the investment arm of Tata Sons and holds a stake in Tata Communications, will be acquiring a 44.35% stake in Tejas Networks.

Tejas Networks has already approved a preferential allotment of Rs 1,850 crore to Panatone Finvest. The company will make a preferential allotment of 1.94 crore equity shares at a price of Rs 258 aggregating to Rs 500 crore to Panatone. There will also be a preferential allotment of 5.23 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of Rs 258 aggregating to Rs 1350 crore.

This may be exercised by Panatone in one or more tranches during the period commencing from the expiry of 12 months from the date of allotment of the warrants until the expiry of 18 months. Further, Panatone will also acquire up to 13 lakh equity shares of the Tejas Networks from certain personnel in management, at a price not exceeding Rs 258, aggregating to Rs 34 crore.

Subsequently, Panatone and other certain companies of the Tata group will make an open offer to acquire up to 4.03 crore equity shares of Tejas Networks representing 26 percent of the emerging voting capital in accordance with SEBI Takeover Regulation. Therefore, if the open offer is successful, and post the conversion of warrants, Tata Sons will hold a 44.35 percent stake in Tejas Networks.

(With inputs from PTI)

Watch the accompanying video of CNBC-TV18’s Reema Tendulkar for more details.

(Edited by : Dipika Ghosh)

First Published:Jul 29, 2021 10:47 AM IST