Mumbai, Sept. 5: Videsh Sanchar Nigam, the international long distance and broadband player, has acquired a 100 per cent stake in Tata Power Broadband from Tata Power Co for Rs 239 crore. Tata Power Broadband is a wholly-owned arm of Tata Power.
After getting the board’s approval, VSNL had entered into a negotiated agreement for sale with Tata Power (TPC), under which the telecom firm would acquire Tata Power Broadband (TPBL), VSNL informed the Bombay Stock Exchange.
To facilitate the acquisition by VSNL, Tata Power had spun off its broadband division into Tata Power Broadband Co Pvt Ltd in January 2004.
At that time, Tata Power Broadband had 60 clients. It has been functioning as a carrier’s carrier by providing a backbone for transporting bulk traffic of other service providers of Internet, data and voice (call centres).
The agreement for sale will be effective after the two sides arrive at a binding share purchase agreement for purchase of the 100-per-cent stake of TPC in Tata Power Broadband, which will become a wholly-owned subsidiary of Videsh Sanchar Nigam Limited.