Tata Communications to acquire equity in Chinese companyJune 18th, 2008 - 4:01 pm ICT by IANS
Mumbai, June 18 (IANS) Tata Communications International, a wholly owned subsidiary of Tata Communications Ltd, will be acquiring 50 percent equity interest in the Beijing headquartered IT solutions provider, China Enterprise Communications Ltd (CEC) Announcing this in a regulatory intimation Wednesday, the company said it has signed an equity joint venture agreement (EJV) with the shareholders of CEC to this effect and was awaiting approval from relevant bodies and government.
At present, CEC is majority-owned by CITIC (China International Trust and Investment Corporation) with other investors including SASAC (State owned Assets Supervision and Administration Commission) and CE-SCM.
According to the company, the EJV will help Tata consolidate its position in providing services to multinational enterprises and domestic enterprises in China.
CEC was recently awarded the IP-VPN (Internet Protocol Virtual Private Networks) service licence by China’s ministry of information industry, the statement said. It added that CEC has a network throughout China with no regional restrictions.
“TCL is all set to become one of the first global telecom companies to attain this type of access to the Chinese market,” said Vinod Kumar, president (data and mobility services) of Tata Communications.
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