No plans to merge businesses: Tata Communications

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No plans to merge businesses: Tata Communications

Commenting on the speculation surrounding the Tata Comm merger, he said, there was neither any imminent plan to merge the Tata group’s communications businesses nor any plans to raise any fresh equity or bring in a fresh strategic partner.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See latest News about Tata Comm See previous management interviews See what other Experts & Brokerages are saying about Tata Comm Tata Comm BSE | NSE 29/05/12 Are Mutual Funds betting on Tata Comm?

Q: There is a concern in the market that Tatas may not be interested in Tata Communications, which means they may even look at selling a majority stake. Can you confirm or deny that or would you sell an equity stake not debt, my question is specifically on equity. Would you get out of the business which means give somebody as a majority holding and perhaps do your ILD business in your other Tata companies or would you sell a stake to raise capital at this point of time?

A: I do not want to comment on speculation. At least from the company's perspective, I can say that there is no plan to raise any fresh equity from either existing shareholders or from any other shareholders or bringing in a strategic partner. But beyond a point, I cannot comment on what any of our promoters or shareholders whether be it the Tata Group or the Government of India wishes to do with their shareholding.

Q: When you bought VSNL or when VSNL became Tata, the government was going to take the land basically they were going to take the real estate out of it and keep the real estate. Could you tell us the status-has the real estate being removed, do you get any residual value, are you paying lease on some of the properties where your buildings are sitting right now?

A: The land which you are referring to is a surplus land that the government has identified that was to be hived off from the company and go back to the original shareholders, not just the government of India but also other public shareholders excluding the Tata Group that bought 45% stake. That surplus land is not being used in any form currently and there is no progress or development in terms of what's going to happen to that land. It's for the government to decide in terms of how they want to dispose off or extract value from that land and for them to agree with the Tata Group and other shareholders how to dispose that land. But from a company's perspective there is no residual value that we get from the land nor are we using that surplus land in any manner for our operations today.