Tata Sons subsidiary to acquire controlling stake in Tejas Networks for Rs 1,884 crore, share hits 52-week high

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Biznextindia : Bengaluru based telecom equipment manufacturer Tejas networks on tursday said that Tata sons subsidiary Panatone to acquire a controlling stake of 43.35% for Rs. 1884 crore.

Tejas network share hit upper circuit of 5% to Rs. 244.35 after the announcement of the agreement.

For this the company has signed a definitive agreement with Panatone Finvest under which preferential allotment of 1.94 crore equity shares at a price per equity share of INR 258 per share aggregating to INR 500 crore.

There also will be a preferential allotment of 3.68 crore warrants, each carrying a right to subscribe to 1 (one) equity share at an exercise price of INR 258 per equity share aggregating to INR 950 crore, which may be exercised by Panatone in one or more tranches during the period commencing from the date of allotment of the warrants until expiry of 11 (eleven) months from the date of allotment of the warrants.

Further a Preferential allotment of 1.55 crore warrants, each carrying a right to subscribe to 1 (one) equity share at an exercise price of INR 258 per equity share aggregating to INR 400 crore, which may be exercised by Panatone in one or more tranches during the period commencing from the expiry of 12 (twelve) months from the date of allotment of the warrants until expiry of 18 (eighteen) months from the date of allotment of the warrants.

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 per equity share aggregating to Rs 34 crore, subject to such terms and conditions as mutually agreed between the parties, the statement said.

“We are excited to partner with Tejas Networks, India’s leading telecom and network company with a strong DNA of R&D. We look forward to working with the highly experienced management team of Tejas Networks and creating a full stack of globally competitive wireline and wireless products” Mr. Saurabh Agrawal, Executive Director of Tata Sons Private Limited said.

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