Tata Sons’ arm to take over Tejas Networks

New Delhi, July 29: Tejas Networks, a telecom and network firm, on Thursday said an arm of Tata Sons will acquire a controlling stake in it for nearly Rs 1,890 crore in a multi-step deal.

The company has executed definitive agreements with Panatone Finvest, a subsidiary of Tata Sons—Tata Group’s holding firm—it said in a statement.

As part of the agreement, the company will make a preferential allotment of 1.94 crore shares at a price of Rs 258 per share aggregating to Rs 500 crore to Panatone.

There will also be another preferential allotment of 3.68 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of Rs 258 per share aggregating to Rs 950 crore, within 11 months.

Further, a preferential allotment of 1.55 crore warrants, each carrying a right to subscribe to one equity share at an exercise price of Rs 258 each aggregating to Rs 400 crore, will also be made. This right has to be exercised within 18 months.

Panatone will also acquire up to 13 lakh equity shares of the Tejas from certain personnel in management, at Rs 258 per share or less, aggregating to Rs 34 crore.

Subsequently, Panatone and certain companies of the Tata group will make an open offer to acquire up to 26 per cent stake in Tejas Networks.

Tejas Networks designs, develops and sells highperformance networking products to telecos and internet providers in over 75 countries.