CCI approves acquisition of Tata Communications Limited by Panatone Finvest LimitedCCI approves acquisition of API Holdings Private Limited equity shareholding by CDPQ Private Equity Asia Pte. Ltd
(Judicial Quest News Network)
The Competition Commission of India (CCI) approves acquisition by Panatone Finvest Limited (“Acquirer”) of Tata Communications Limited (“TCL”) under Section 31(1) of the Competition Act, 2002, today.
The Proposed Combination envisages the proposed acquisition of such shareholding not exceeding 26.12% by the Acquirer in the Target (“Proposed Combination”). As a result of the Proposed Combination, the Acquirer Group / Tata Group would increase its shareholding from 48.87% to such shareholding not exceeding 74.99%.
The Acquirer is a Systemically Important Non-Deposit Taking Core Investment Company (“CIC-ND-SI”) registered with the Reserved Bank of India and is a subsidiary of Tata Sons and belongs to the Tata Group.
TCL is part of the Tata group and is a facilities-based service provider of a broad range of integrated communications services. It generates revenue from three business segments – wholesale voice, enterprise and carrier data and others. In India, TCL is, directly and indirectly through its subsidiaries, engaged in the following activities:
- International Long-Distance services (“ILD”) – voice;
- National Long-Distance services (“NLD”) – voice;
- Undersea cable systems (“UCS”);
- Internet Service Provider (“ISP”), offering connectivity, messaging, Internet telephony; and
- Enterprise business providing valued added service
The combination envisages an acquisition of approximately 2% shareholding in the Target by the Acquirer along with certain additional rights.
The Acquirer is a wholly owned subsidiary of CDPQ and located in Singapore. CDPQ acts as an institutional investor that manages funds primarily for public and para-public pension and insurance plans. CDPQ is a Canadian institutional fund, which manages and serves more than 40 depositors which comprises public and private pension and insurance funds in Quebec.
API Holdings is a company incorporated in India and is the ultimate parent entity of the API Holdings group. API Holdings, either directly or through its subsidiaries, carries out various business activities inter alia including:
(a) wholesale and distribution of drugs (including pharmaceutical products, medical devices and over the counter drugs);
(b) provision of transportation services primarily focused on the pharmaceutical sector;
(c) owning technology and intellectual property for developing e-commerce platforms including marketplaces for facilitating the sale of pharmaceutical products, medical devices and OTC drugs;
(d) manufacturing and marketing of pharmaceutical, ayurvedic and nutraceutical products, medical devices, hygiene products, life-saving medicines, herbal products and food supplements;
(e) operating and providing an online application which provides a business to business (“B2B”) order management system for retailers and distributors of pharmaceutical products, medical devices and OTC drugs.
