Tata Communications Shares Jump 4% on Buzz of Sale of Data Centre Business
Tata Communications shares advanced nearly 4 per cent to hit intraday high of Rs. 418 in a weak market after The Economic Times reported that Google and e-commerce giant Amazon are in talks with Tata Group to buy Tata Communications’ data centre business.
The Economic Times report says that the deal is expected between Rs. 4,261.4 to 4,589.2 crore ($650-700 million).
The report adds that if the deal goes through then it will help Tata Communications reduce its debt burden.
Meanwhile, the Bombay Stock Exchange has sought clarification from the company with reference to this development for which company’s response is awaited.
As of 11:43 a.m., the shares of Tata Communications traded 2.98 per cent higher at Rs. 414.35 outperforming Nifty which was down 1.25 per cent. The trading volume on the counter jumped over three times as 1,50,000 shares changed hands on the BSE compared to average of 54,000 shares traded daily in the past two weeks.