AT&T Seeking to Buy Out Minority Shareholder in Indian Subsidiary
Published on: 6th Jun 2014
Note -- this news article is more than a year old.
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.