Tata Sons-arm Panatone Finvest to amass controlling stake in Tejas Networks for practically Rs 1,890 crore

Tejas Networks, a telecom and community agency, on Thursday mentioned an arm of Tata Sons will purchase controlling stake in it for practically Rs 1,890 crore in a multi-step deal.
The firm has executed definitive agreements with Panatone Finvest, a subsidiary of Tata Sons (Tata group holding agency), it mentioned in an announcement.
As a part of the settlement, the corporate will make a preferential allotment of 1.94 crore fairness shares at a value per fairness share of Rs 258 per share aggregating to Rs 500 crore to Panatone.
There can even be one other preferential allotment of three.68 crore warrants, every carrying a proper to subscribe to at least one fairness share at an train value of Rs 258 per fairness share aggregating to Rs 950 crore.

This could also be exercised by Panatone in “one or more tranches during the period commencing from the date of allotment of the warrants until expiry of 11 months from the date of allotment of the warrants”, the assertion added.
Further, a preferential allotment of 1.55 crore warrants, every carrying a proper to subscribe to at least one fairness share at an train value of Rs 258 per fairness share aggregating to Rs 400 crore, can even be made.
This could also be exercised by Panatone in a number of tranches in the course of the interval commencing from the expiry of 12 months from the date of allotment of the warrants till expiry of 18 months from the date of allotment of the warrants, it added.
Panatone can even purchase as much as 13 lakh fairness shares of the Tejas Networks from sure personnel in administration, at a value not exceeding Rs 258 per fairness share aggregating to Rs 34 crore, topic to such phrases and situations as mutually agreed between the events, the assertion mentioned.
Subsequently, Panatone and different sure firms of the Tata group will make an open supply to amass as much as 4.03 crore fairness shares of Tejas Networks representing 26 per cent of the rising voting capital in accordance with SEBI Takeover Regulations, the corporate mentioned.
Commenting on the event, Tejas Networks Chairman V Balakrishnan mentioned,” This affiliation gives us the mandatory monetary sources, international relationships and robust ecosystem to innovate and scale our enterprise.”
Tata Sons Executive Director Saurabh Agrawal mentioned Tejas Networks is a number one telecom and community firm with a powerful DNA of analysis and growth. “We look forward to working with the highly experienced management team of Tejas Networks and creating a full stack of globally competitive wireline and wireless products.”
Tejas Networks CEO and Managing Director Sanjay Nayak mentioned, the affiliation with Tata group will speed up the realisation of this imaginative and prescient and allow the corporate to handle the massive market alternative out there to us to construct a financially robust international firm, backed by a trusted model.
After the acquisition, Nayak will proceed as Managing Director and Chief Executive Officer to steer Tejas Networks together with the prevailing administration workforce by the subsequent part of development, the assertion added.
“The preferential allotment of the fairness shares and warrants has been accepted by the board of administrators of Tejas Networks and the transactions are topic to shareholders’ approval and different customary closing situations and approvals, Tejas Networks mentioned.

Kotak Mahindra Capital Company is appearing because the supervisor to the open supply and Khaitan & Co is appearing because the authorized advisor to the transaction.
Tejas Networks designs, develops and sells high-performance networking merchandise to telecommunications service suppliers, web service suppliers, utilities, defence and authorities entities in over 75 nations.