FDI exercise by Tata companies
The Cabinet Committee on Economic Affairs has approved an Rs.2,480.92 crore Foreign Direct Investment proposal for the acquisition of 12.32% of the equity share capital (on a fully diluted basis) of ATC Telecom Infrastructure Private Limited by ATC Asia Pacific PTE Limited (ATC Singapore).
With this approval the cumulative FDI of ATC Singapore into ATC Telecom Infrastructure Private Limited (ATC India) will be Rs.5,417.2 crore in financial years 2018-19 to 2020-21, the Cabinet Committee on Economic Affairs said on 25 Nov 2020.
This is a result of the exercise of a put option by Tata Tele Services Limited (TTSL) and Tata Sons Private Limited (TSPL).
ATC India is engaged in the business of providing telecom infrastructure services to telecom operators.
The company has existing FDI approval of up to 86.36% and with this approval, it will rise to 98.68% (on a fully diluted basis).
ATC India is one of the leading independent Passive Telecom Infrastructure Providers in India and is an indirectly-held subsidiary of American Tower Corporation (NYSE:AMT). Since launching operations in India in 2007, ATC India’s portfolio has expanded to approximately 75,000 towers. ATC India has a national presence and services all major telecom service providers in the country.
FDI up to 100% is allowed in Telecom Services Sector wherein 49% under automatic route and beyond 49% through government route subject to observance of licensing and security conditions by the licensee as well as investors as notified by the Department of Telecommunications (DoT) from time to time. #investment #technologies #banking #telecommunications /fiinews.com
