Reliance Capital to pick up 14.96% stake in Spanco Telesystems and Solutions Ltd.

24th August 2005: Reliance Capital on Tuesday said it will invest Rs 32.27 crore for picking up 14.96% stake in Spanco Telesystems and Solutions Ltd. REL has agreed to subscribe to 29.80 equity shares and 5.70 lakhs warrants representing 14.96% stake in Spanco at a price of Rs 90.90 per share, totaling Rs 32.27 crore, the company informed Bombay Stock Exchange. Spanco is issuing the shares to Reliance Capital under the preferential route. The preferential issue is subject to approval by the shareholders of Spanco at the AGM to be held on September 15, 2005, it said.

This will be the third strategic acquisition by Anil Ambani's ADAE group after the formal announcement of the split in the Rs 1,00,000 crore Reliance empire in June. Earlier, the ADAE group had acquired Adlabs and has finalised a deal to acquire the entire stake of AMP and Sanmar in AMP Sanmar Life Insurance.

Anil Ambani buys 14.9% in Spanco Telesystems & Solutions for Rs 30 crore

21st August 2005: The Anil Dhirubhai Ambani group is buying 14.9% in Spanco Telesystems & Solutions, a Mumbai-based telecom solutions company, for about Rs 30 crore. Spanco’s board will meet on August 22 to consider the issue of shares on a preferential basis to an undisclosed Anil Ambani group company for about Rs 100 per share. Industry sources said that this is a purely financial investment and Spanco will use the funds to expand its 5,000-seat capacity.

In the past one month, the Anil Ambani group has picked up small non-strategic stakes in fast-growing companies to take advantage of their potential. The group has also bought strategic stakes in large companies such as Adlabs (for about Rs 360 crore) and AMP Sanmar (for about Rs 100 crore). Last week, shareholders of Spanco approved the company’s proposal to increase its authorised share capital and allowed it to issue additional shares and warrants to outside investors and promoters.

Spanco provides telecom solutions to leading telecom companies such as Bharat Sanchar Nigam, Videsh Sanchar Nigam and Tata Teleservices. It has seven offices in India and two in the US. Spanco’s website says that it is a specialist in access network solutions through fiber, copper and wireless environment and is involved in various network infrastructure-related projects in oil, railway and defence sectors.

Tatas to buy INCAT International Plc.

21st August 2005: Tata Technologies Ltd (TTL) is to acquire a UK-based INCAT International Plc. The company announced its intention to acquire INCAT through its subsidiary Tata Technologies Inc., USA by making a cash offer at 220 pence per share (Rs 169.40 per share) for 100% of equity shareholding of the UK-based company, Tata group said in a release.