Thursday, July 24, 2003
Seven months after the merger between the two companies,
Hughes Network Systems (HNS) and Tata Teleservices, the former
bought 270 preference shares in Tata Teleservices (TTSL).
DoT earlier refused the proposal, saying that it would breach
the 49% sectoral cap.
As part of the amalgamation plan, HNS had to buy 150 preference
shares of TTSL which are presently held by Ritambara Agents.
Goldman Agent, another investment company having 120m preference
shares in TTSL, will transfer its equity shares amounting
to 62m equity shares to Hughes.
DoT's objection was based on assumption that the equity capital
of TTSL was only Rs 602 crore. However the equity capital
of TTSL was Rs 1,425 crore ending March 31, 2003.
The foreign equity structure of TTSL is held by
*HNS and HEC --12.3%
*Stanchart -- 7.2%
*HNSI -- 5.4%
*RAPL -- 6.7%
*GAPL -- 5.4%
Last updated : February 2, 2004
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