Tata Communications shares gain nearly 8% on bourses

MUMBAI: Shares of Tata Communications today soared by nearly 8 per cent after British major Vodafone's South African subsidiary Vodacom said it has entered into exclusive discussions regarding a potential acquisition of Neotel, controlled by the Indian firm.

Tata Communications' scrip settled for the day at Rs 202.50, up 7.66 per cent on the BSE. During the day, the scrip gained 8.82 per cent to Rs 204.70.

At the NSE, the stock jumped 6.87 per cent to close at Rs 201.35.

"There are a number of important steps that we still need to complete in order to conclude the transaction. If the deal is implemented, Vodacom intends to put significant investment into the combined entity to provide high-speed fixed connectivity to many more businesses and consumers," Vodacom Group CEO Shameel Joosub had said in a joint-statement yesterday.

Neotel, South Africa's second-biggest fixed-line phone operator, is 68.5 per cent owned by Tata Communications.

The deal is reportedly valued at USD 500 million (Rs about Rs 3,130 crore) but the companies have not mentioned an amount so far.