Tata Communications Ltd may sell a stake in its retail and broadband business to Singapore state investment firm Temasek Holdings , the Mint paper reported on Monday.
“Temasek is leading the race for a stake in the new retail business of Tata Communications,” the paper cited a person familiar with the development as saying.
Tata Communications will “hold the majority stake in the retail business venture and Temasek will be a financial investor”, it cited the person as saying.
Tata Communications and Temasek were “working out the structure of the deal and should conclude it shortly”, it cited the source as saying. Several private equity firms had also held talks about buying a stake, the paper said.
A spokeswoman for Tata Communications did not immediately return a call seeking comment.
Tata Communications, formerly known as Videsh Sanchar Nigam Ltd, is building undersea cables between Asia and Europe and also across Asia, and plans to spend $2 billion globally over the next three years.
It has been expanding into network services for companies and broadband. It decided in March 2007 it would spin off its retail business including broadband and Internet services, Mint said.
Source: Reuters