Israeli investment firm Koor Industries Ltd. intends to buy a 10-percent stake in pan-India cellular operator Tata Tele Services Ltd. for $577 million to $720 million, the Economic Times reported.
The report said Koor, a group company of Israel's largest cellular operator Cellcom, has submitted an initial letter of intent (LoI) regarding the investment with the Tel Aviv Stock Exchange.
In the LoI, Koor said it is considering acquisition of a 'substantial minority interest in the communications company' and the process was 'preliminary', the report said, adding that investment bankers peg this stake at 10 percent.
According to unnamed sources, Tata Group is looking at equity dilution in TTSL, but will retain majority control with a 51 percent stake, said the report. A company spokesperson declined to comment.
Singapore's Temasek holds 9.9 percent and C Sivasankaran, chairman of diversified group Siva Ventures, holds 8 percent in TTSL, while another 20 percent stake could be up for sale, added the report.
Source: Reuters