The proposed investment is intended to simplify the existing group structure by moving TC UK under the direct ownership of Tata Communications without any change in the company’s ultimate ownership and beneficial economic interest in TC UK, the company stated in an exchange filing.
Tata Communications will invest up to $26.8 million (around ₹223.84 crore) by subscribing to 10,41,088 new ordinary shares of TC UK at a fair market value of $25.7 per share.
In addition to the share subscription, TC UK will also undertake certain restructuring steps to facilitate the movement of TC UK from being a step-down subsidiary to a direct wholly owned subsidiary of Tata Communications.
The proposed investment and restructuring may require obtaining necessary regulatory approvals, including approval under the UK’s National Security and Investment Act, 2021.
Tata Communications stated that there will be no change in its ultimate shareholding in TC UK, which will continue to be a wholly owned subsidiary of the company and part of the group structure.
The simplification of the group structure is aimed at streamlining the company’s operations and improving efficiency.
