Israeli telecom firm Koor intends to buy stake in Tata Teleservices
18 Apr 2008
Israeli telecom firm, Koor Industries Ltd intends to acquire a minority stake of around 10 per cent in India's Tata Teleservices (TTSL), the telecom arm of the Tata Group. However, there was no official word from TTSL on the proposed deal.
Koor said today in a filing to the Tel Aviv Stock Exchange that it has sent a non-binding letter of intent to invest $577 million (about Rs2,300 crore) in the Indian telecommunications firm.
The CDMA service provider plans to dilute around 30 per cent of the company to private equity firms and investors to raise $1 billion. The company has also appointed Lazard Capital for stake sale and believed to be in talks with potential buyers, including Israel-based Bezeq.
TTSL has already sold an 8-per cent stake to Chennai-based tycoon C Sivasankaran and to Singapore firm Temasek, which holds 9.9 per cent.
Koor Industries, a group company of Israel's largest cellular operator Cellcom has diverse business interests in agrochemicals, defence electronics, venture capital and telecommunications.
The company operates in telecommunications and technology business through its holding companies - Telrad Networks, ECtel and Dekolink Wireless.
Koor's primary shareholder is the Nochi Dankner's IDB Group, which acquired 55 per cent of Tel Aviv- based Koor two years ago. IDB owns Cellcom, the parent company of Koor