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Tata Communications plan to hive off its data centre business hits a roadblock

Xen

EntMnt Ambassador
Official Info
#1
Tata Communications' plans to hive off its data centre business into a subsidiary have been referred back to the government-appointed director on the company's board by the Department of Telecommunications.

Earlier this year, the undersea cable company had sought approval for the divestment as it required investments to the tune of 1,500 crore over the next five years.

The company that had a net debt of $1.55 billion ( 8,684 crore) in March recently received government approval to separate land assets that locked it from raising funds via share sale since the Tata group bought majority stake in 2002.

Carving it out of the Internet Data Centre business as a separate entity would enable it to raise finances independent of the parent company.


Read More : Tata Communications plan to hive off its data centre business hits a roadblock - The Economic Times