Date:06/09/2005 URL: http://www.thehindubusinessline.com/2005/09/06/stories/2005090602560400.htm

Back VSNL set to acquire Tata Power Broadband for Rs 239 crore

Our Bureau

Mumbai , Sept 5

VSNL will acquire Tata Power Broadband Ltd from Tata Power Company for Rs 239 crore.

VSNL has completed the execution of duly negotiated agreement for the sale, it said in a notice to the stock exchanges today.

Tata Power Company, preparatory to this change, had spun off its broadband division into a separate company some time back.

Tata Power Broadband is a wholly owned subsidiary of Tata Power Company.

It has a large fibre optic network in Mumbai and Pune and provides services under its Internet Protocol-I, IP-II and ISP licences.

VSNL has retail broadband services and a fibre optic network would best fit with its business profile.

This agreement for sale is subject to the parties arriving at a binding share purchase agreement for purchase of 100 per cent stake of Tata Power Company in Tata Power Broadband, thus making the latter a wholly owned subsidiary of VSNL, said the notice.

VSNL intends to consider and initiate thereafter a detailed approval process of merger under applicable provisions of the Companies Act, 1956.