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Avaya gets nod to acquire upto 25.1% of Tata Tele
By siliconindia staff writer
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Monday, 07 June 2004, 19:30 IST
NEW DELHI: US-based communication services provider Avaya International will pick up to 25 per cent stake in Tata Telecom (TTL) following clearance from Foreign Investment Promotion Board.
Avaya had proposed to acquire 25.1 per cent of the paid up capital of TTL from the Tata group, sources said.
Avaya plans to acquire the 25.1 per cent stake (35,70,082 equity shares) through its wholly-owned subsidiary Avaya Mauritius.
The American firm will also have to make an open offer for 20 per cent outstanding shares of TTL.
With Avaya getting the nod to acquire 25.1 per cent of TTL, the Tata group company can now import and distribute telecom solutions, equipment and offer specialied after sales services.
Though TTL has beeb given the nod to import and distribute telecom equipment and provide specialied services, it would not be allowed to retail trading and imports should be in accordance with the Exim Policy.
FIPB approved Avaya's proposal on the basis on Department of Telecom's contention that 100 per cent FDI was allowed in the areas of telecom equipment manufacturing, trading and consultancy.
The proposal of Avaya will have to adhere to the guidelines of the Securities and Exchange Board of India (SEBI) and RBI pricing norms.