AT&T Seeking to Buy Out Minority Shareholder in Indian Subsidiary

Published on:

USA's AT&T is expected to receive partial approval to lift its stake in an Indian landline subsidiary it owns to just under full ownership.

AT&T currently owns 74% of AT&T Global Networks Services India, which provides corporate telecoms services in the country.

As the previous government relaxed the 74% limit on foreign shareholdings, AT&T has applied to buy out the minority shareholders, but for procedural reasons may not be allowed to buy the full 26% stake outright.

AT&T has applied to buy a 24.67% stake from the other shareholder, Mahindra Telecommunications Investment to stay within local laws limiting purchases of the sort it seeks to undertake to less than 25% in a single year.

It would then buy the remaining 1.33% later.

The Department of Telecom has reportedly approved the first transaction, but not the second, so that AT&T will be left with 98.67% of its Indian subsidiary, unless it can overcome the objections to the second transaction.

The price to be paid to the minority shareholder has also still to be agreed.

Page Tools

 

Tags: at&t  India 

Sign up for our free daily email news alerts

Sample Copy