Tejas Networks, a telecommunications and telecommunications company, on Thursday said the Tata Sons arm would receive a $ 1,890 controlling bond in a multi-step agreement.The company has entered into formal agreements with Patonone Finvest, a subsidiary of Tata Sons (a firm holding on to Tata), the statement said.
As part of the agreement, the company will allocate a special share of 1.94 crore equity at a price per share of Rs 258 per share plus Rs 500 crore in Panatone.There will also be another special allocation of 3.68 crore authorizations, each with the right to register a single share price of Rs 258 crore per share equals Rs 950 crore.
This may be used by Panatone “with one or more machines for a period beginning from the date of issue of permits for up to 11 months from the date of allocation of permits”, the statement said.
In addition, a special permit will be allocated for 1.55 crore, each holding the right to register a single share price of Rs 258 crore for each allocation equal to Rs 400 crore.This may be used by Panatone in one or more lines for a period ranging from the end of the 12-month period from the date of book distribution to 18 months from the date of licensing, in addition.
Panatone will also receive up to 13 lakh shares of Tejas Networks from certain executives, at a rate not exceeding Rs 258 per share equivalent to Rs 34 crore, depending on the terms and conditions agreed upon between the parties, the statement said.Subsequently, Panatone and other Tata companies will make an open promise to acquire up to 4.03 crore equity shares of Tejas Networks representing 26 percent of the emerging capital in accordance with SEBI Takeover Regulations, the company said.
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Commenting on the development, Tejas Networks Chairman V Balakrishnan said, “The organization provides us with the necessary financial resources, international relations and a strong environmental plan to establish and grow our business.”Tata Sons CEO Saurabh Agrawal said Tejas Networks is a leading telecommunications company and a network with strong DNA for research and development.
“We look forward to working with the experienced management team of Tejas Networks and building a whole host of world-class cable products and wireless products.”Tejas Networks CEO and Managing Director Sanjay Nayak said, merging with the Tata team will accelerate the realization of this vision and empower the company to address the huge market opportunity available to us to build a financially strong global company, backed by a reliable brand.
Following the acquisition, Nayak will continue as Executive Director and Chief Executive Officer to lead Tejas Networks and the existing management team in the next phase of growth, the statement added.”Special allocations of shares and authorizations have been approved by the board of directors of Tejas Networks and the transaction is subject to shareholders’ approval and other conditions of customary closure and approval,” Tejas Networks said.Kotak Mahindra Capital Company operates as an open gift manager and Khaitan & Co acts as a legal advisor for transactions.
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Tejas Networks designs, develops and sells highly effective telecommunications products to telecommunications service providers, Internet service providers, services, security and government agencies in more than 75 countries.
