Tata Comm is top gainer on BSE

Tata Communication is the top gainer on the BSE, up 4.5% at Rs.196.40, with an intra day high and low at Rs.199.80 and Rs.195 respectively. Volumes are large at 84,000 shares being traded today morning compared to 58,000 shares over past two weeks average.

The stock is up after the company announced yesterday late evening that Vodacom and the shareholders of Neotel announced having entered into exclusive discussions regarding a potential acquisition of 100% shares of Neotel by Vodacom SA.  This is through VSNL SNOSPV, a wholly owned subsidiary of Tata Communications  which has entered into exclusive discussions with Vodacom Group Limited (Vodacom).

The finalisation of the transaction is  subject to the successful conclusion of commercial negotiations and receiving the requisite  regulatory and corporate approvals.

This transaction, if concluded, would stimulate greater competition in the South African fixed telecommunications sector and will accelerate the provision of high speed data links. It would also result in the combined entity being able to offer an expanded product range and, as a consequence, enhanced customer choice. Neotel has access to over 15,000km of  fibre-optic cable, including 8,000km of metro fibre in Johannesburg, Cape Town and Durban.