Tata Communications

Tata Communications is a telecommunications operator part of Indian conglomerate Tata Group along with IT outsourcer Tata Consultancy Services (TCS). The company's infrastructure includes underwater and ground networks, as well as data centers. Tata Communications provides wireless and fixed-line services.

2016: Sale of 17 data centers for $634 million

On May 19, 2016, Tata Communications announced the sale of 17 of its data centers (DPCs) to Singapore telecommunications holding Singapore Technologies Telemedia, part of the state investment company Temasek Holdings.

Under the terms of the agreement, Tata Communications will sell 74% of its data center business for $634 million. Singapore Technologies Telemedia will receive controlling stakes in 14 Tata Communications data centers in India and three data centers in Singapore. The deal, which was announced on May 19, 2016, is scheduled to close "in the coming weeks," and the funds raised will go towards business development, Tata Communications CEO Rangu Salgame said.

Tata sells 17 data centers for $634 million

This sale will provide us with cash that will improve our balance sheet. In addition, it will help us invest in new areas such as cloud and e-commerce. The new partner will act as a co-investor and help expand the business in the field of data centers, Solheim said in a telephone interview with Bloomberg.

According to the publication, the total debt of Tata Communications by September 30, 2015 totaled 95.95 billion rupees ($1.4 billion).

In July 2015, the company announced the beginning of a study of "strategic options" regarding the further development of the data center business, which covers 45 sites around the world. Rangu Solheim noted that Tata Communications did not consider the sale of data centers in countries other than India and Singapore.^[1]

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