Shares of Tata Communications surged 6.7 percent on Tuesday, July 11, following an announcement that its Singapore-based subsidiary has entered into a share purchase agreement to acquire the remaining stake of Oasis Smart Sim Europe SAS.
The deal, valued at ₹99.3 crore ($12 million), will allow Tata Communications to obtain nearly 42% ownership of Oasis Smart Sim Europe SAS.
It is worth noting that Tata Communications had previously acquired a majority stake of 58.1% in Oasis Smart Sim Europe SAS in 2020.
During Tuesday’s trade, the stock opened at a price of Rs. 1,550 per share against the previous close of Rs. 1,532 and rallied further to touch an intraday high of Rs. 1,635 apiece on NSE.
It was trading at ₹1,606 apiece, up by 4.83 percent, at 11:00 a.m. on the NSE.
The stock touched a 52-week high of Rs. 1,674 on June 14, 2023 and a 52-week low of Rs. 960 on July 11, 2022, indicating that at the current level, the stock is trading over 67.2 percent above its 52-week low and only 4 percent below its 52-week high.
The stock has grown nearly 8.5 percent in the last one month. Moreover, in the past one year, it has surged by almost 60 percent. Furthermore, the stock yielded a positive return of over 331 percent in the last five years.
The completion of this transaction grants TCIPL full ownership of Oasis Smart SIM Europe, with a 100 percent equity shareholding. This acquisition empowers Tata Communications to expedite and enhance the development of its Tata Communications MOVE platform roadmap for global markets.
“The acquisition is anticipated to be finalized within the next month or as promptly as feasible, subject to fulfilling standard legal requirements,” the company informed through an official filing.
Once completed, OSSE France and its subsidiary Oasis Smart E-Sim (OSEPL) will become wholly-owned indirect subsidiaries of Tata Communications. The successful completion of the acquisition is contingent upon satisfying the conditions precedent as specified in the agreement.
Oasis specialises in the development and provision of cutting-edge technologies and personalised services that facilitate the implementation of eSIM and SIM technologies.
Tata Communications Limited is an India-based company and a global digital ecosystem enabler. The company offers services, such as network, unified communications, connected solutions, cloud, cyber security, carrier services, and content delivery network.
According to a Mintgenie poll, 6 analysts on average have a ‘BUY’ call on the stock.
