Shares of Tata Communications settled the day 1.67 per cent up in tuesday trade after the company informed Liquid Telecom, a privately-owned, pan-Africa telecom group, majority owned by Econet Wireless Global, has entered into an agreement to acquire its subsidiary Neotel for South African Rand 6.55 billion (Rs 2,904 crore).
The stock added as much as 8.09 per cent to Rs 486 but closed the day 1.67 per cent up on BSE.
Tata Communications owns over 68 per cent stake in South Africa's largest fixed line telephone service provider Neotel.
"The shareholders of Neotel -- Tata Communications of India and minority shareholders led by Nexus Connexion -- have agreed for Liquid Telecom to acquire Neotel for ZAR 6.55 billion," Tata Communications said in a BSE filing.
It further said: "Liquid Telecom is partnering with Royal Bafokeng Holdings (RBH), a South African empowerment investment group, which has committed to take a 30 per cent equity stake in Neotel."
Tata Communications added that the transaction, subject to all affirmative, corporate and other regulatory approvals, is transformative and will create the largest pan-Africa broadband network and B2B telecom provider.