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VSNL Acquires Tata Power Broadband

Techtree: Videsh Sanchar Nigam Ltd. (VSNL) has acquired a 100 per cent stake in Tata Power Broadband for Rs 239 crore. It has been reported that Tata Power had spun off its broadband division into Tata Power Broadband Co Pvt Ltd in January 2004 to facilitate the acquisition by VSNL.
Tata Power Broadband was offering broadband-based services under Internet service provider licences, VSNL informed the Bombay Stock Exchange on Monday. Tata Power Company prior to the buy, had invested in creating a 400 km-long optical fibre backbone in Mumbai and Pune.
This agreement will be effective after both the companies arrive at a binding share purchase agreement for purchase of the 100-per-cent stake of Tata Power Company. VSNL informed Bombay Stock Exchange on Monday about the deal. The VSNL share ended at Rs 386.25 on the NSE on Monday.