Mumbai: A high-level management team from South Korea Telecom is curSouth Korea Telecom may pick up stake in Tata Tele rently in Mumbai, holding discussions with Tata Teleservices Ltd, the CDMA-based telephony service provider of the Tata group, is in talks with for the sale of about 33 per cent stake in the Indian company.
The Korean company is a CDMA-based services provider in South Korea and has recently ventured into 3G services.
J P Morgan is the financial advisor to the deal and the price for the acquisition is expected to be between Rs2,400-2,600 crore..
Tata Tele has presence in over 1,200 towns across 20 circles in the country with a subscriber base of around 4.2 million. Its rival Reliance Infocomm, the other CDMA player in the country, has a subscriber base of around 11.5 million and is valued at about Rs 22,500 crore.
The Tatas hold 66.80 per cent in TTSL, with mutual funds, UTI and foreign institutional investors (FII) holding around 9.54 per cent. Others, including private corporate bodies and retail investors, hold 23.66 per cent stake in TTSL.