Tata Comm to acquire 50 pc in Chinese firm
Telecom solutions provider Tata Communications on Wednesday said it would acquire 50 per cent stake in China Enterprise Communications (CEC) for an undisclosed amount.
"This is an innovative step in our ongoing effort to enable connectivity and managed services across strategic regions and emerging markets that are of high value to our global customers," Tata Communications, Data and Mobility Services, President Vinod Kumar said.
Tata Communications International Pte, a wholly-owned subsidiary of Tata Communications, has signed the equity joint venture agreement with the shareholders of CEC for acquiring 50 per cent stake, the company said in a filing to the Bombay Stock Exchange.
"Through the cooperation with Tata Communications we will focus on the development of the domestic market to provide high quality networking service to multinational as well as domestic enterprises in China," CEC President and CEO Zhu Jianhua said.
CEC has a network reach throughout China with no regional restrictions on its service capabilities. CEC provides VPN connectivity reach to 347 cities in China, including Beijing, Shanghai, Ghangzhou and Shenzhan.
The reach complements Tata Communications' Virtual Private Network (VPN) presence in 120 Indian cities and 19 other major business capitals in North America, Europe and Asia.
CITIC (China International Trust and Investment Corporation) is the majority stake holder in CEC, while other stake owners, include SASAC and CE-SCM.
Tata Communications investment in CEC is subject to Chinese governmental and regulatory bodies approvals.
Shares of Tata Communications were trading at Rs 438.65, up 1.25 per cent on the BSE in morning trade.
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