Pantone exempted from Tata Comm open offer

Markets regulator Sebi has granted exemption to Pantone Finvest Ltd from complying with certain requirements of takeover norms with respect to the proposed direct acquisition in Tata Communications.

The exemption granted is subject to certain conditions and is limited to the requirements of making an open offer and pricing condition under the Substantial Acquisition of Shares and Takeovers (SAST) Regulations.

The order came after Pantone filed an application with Sebi seeking exemption from the applicability of certain provisions of SAST norms.

Tata Communications has a public shareholding of 25.01 per cent and non-public shareholding of 74.99 per cent which is entirely held by the promoters and the promoter group.

Government of India is also a promoter presently holding 26.12 per cent stake in the firm through the President of India.

The proposed acquisition is based on recommendations of the Department of Investment and Public Asset Management by which the Government of India proposes to divest its shareholding of 26.12 per cent in Tata Communications.

The government intends to divest its shareholding partly through offer for sale (OFS) process and partly through sale to a strategic partner-- Pantone, Sebi noted in an order passed on Tuesday.

The share sale to Pantone is intended to be undertaken at the OFS price which will be determined as the part of the OFS process.