Tatas sign shareholders pact on VSNL

Mumbai: The Tata group has signed the shareholders agreement with the Indian government for acquisition of a 25-per cent stake in Videsh Sanchar Nigam Limited (VSNL). Union Minister of Communications, Information Technology and Parliamentary Affairs Pramod Mahajan was present at the occasion. Also present were Tata Sons chairman Ratan Tata and VSNL managing director S K Gupta.

Speaking at the signing ceremony, Mahajan said: "It is a matter of great pride for our government to have successfully taken the disinvestment process forward. It only proves the grit and determination of our government to transform India into a vibrant and progressive state. I am happy that the Tatas have successfully bid for VSNL. I am sure they will take the company from strength to strength."

Ratan Tata said: "We have great respect for all that VSNL has achieved through its dedicated and extremely competent work force. The people and capabilities resident in VSNL will be a critical component of the Tata groups telecom strategy, and the partnership between our organisations will help us in providing end-to-end world-class telecom services to the Indian public."

Gupta said: "I am confident that the Tata-VSNL combine will be able to leverage their respective strengths together and evolve an effective and aggressive business strategy. This, I am sure, will benefit both the shareholders and the public at large."

VSNL, a domestic and NYSE-listed company with a FY2001 turnover of Rs 7,966 crore, has a workforce of around 3,000 employees. The company, over the years, has built up a very strong position in international long-distance, Internet and other value-added services. It also possesses a national long-distance license ().