Tata Comm shares down 4% on acquisition of US-based company; Motilal Oswal #39;Neutral#39; on stock

Tata Comm shares down 4% on acquisition of US-based company; Motilal Oswal #39;Neutral#39; on stock

Consummation of the deal is subject to approval by Kaleyra’s stockholders, certain regulatory approvals and other customary closing conditions.



Tata Communications share price fell more than 4 percent in the early trade on June 30 as company is going to acquire US-based Kaleyra Inc.

At 09:26 am, Tata Communications was quoting at Rs 1,557.35, down Rs 24.75, or 1.56 percent on the BSE.

Tata Communications has agreed to acquire Kaleyra, Inc. in a cash only transaction, at a price per share of USD 7.25 for a total consideration to Kaleyra shareholders of approximately USD 100 million and the assumption of all outstanding debt.

This transaction has been unanimously approved by the boards of directors of both Tata Communications and Kaleyra.

Consummation of the deal is subject to approval by Kaleyra’s stockholders, certain regulatory approvals and other customary closing conditions.

Upon closing of the transaction, expected in six to nine months, Kaleyra Inc. will become a subsidiary of Tata Communications Limited.

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Kaleyra Inc. has subsidiaries in United States of America, Italy, India, UAE, Germany, UK, Dominican Republic, Mexico, Africa and Canada.

Kaleyra is a global group providing mobile communication services to financial institutions, e-commerce players, OTTs, software companies,