Tata Communications shares today rose more than two percent after the company entered into an agreement to sell its South African unit Neotel Pty to Liquid Telecom. The stock gained 2.44 percent to settle at Rs 460.55 on BSE. During the intra-day trade, the scrip jumped 8.09 percent to touch a high of Rs 486. Also Read - Budget 2018: Here is what the tech sector and startups are expecting from Government of IndiaAlso Read - Tech spending in India to grow by 12% in 2018
On NSE, it rose 1.56 percent to Rs 457.05. It had touched a high of Rs 486 and a low of Rs 455.85. On the volume front, 4.51 lakh shares of the company were traded at BSE and more than 35.47 lakh shares changed hands at NSE during the day. Also Read - Alibaba to offer cloud services to Indian enterprises with Mumbai data center
In a BSE filing, Tata Communications said it will sell majority stake in South African internet-service provider Neotel Pty Ltd to telecommunications company Econet Wireless Global for about $293 million. Liquid Telecom, majority of which is owned by Econet Wireless Global, entered into an agreement to acquire Neotel, the company said in a statement.
Tata Communications acquired 68.5 percent controlling stake in Neotel in 2009. The transaction, if approved by stakeholders of companies involved and regulatory authorities, will create the largest pan-African broadband network and business-to-business telecoms provider, the company said.