The tech giant Google and Amazon are known to procure the data center business of Tata Communications at an expected deal of about Rs 4,261.4 crore to Rs 4,589.2 crore ($650-700 million).
Singapore-based Sembcorp Industries has also round-table with the Tata Group management regarding the buyout, reports.
Google and Amazon are competing with bulge-bracket private equity funds including the Blackstone Group, Carlyle, KKR, Bain Capital and Advent International, who are all looking to buy up to 74% stake in the data centre unit and take control of the business that is spread across 44 locations in India and abroad.
The transaction, if successful, will help Tata Communications reduce debt burden and concentrate on its core data carrier business. The company has net debt of Rs 9,178 crore ($1.4 billion), according to a July 2015 investor presentation.
The Tata Group has hired Jefferies LLC to advise on the transaction. “The initial round of bids have already come and we are in the midst of advancing the process,” one of the sources said.
Tata Comm declined to comment saying it would not say anything beyond last month’s exchange filing. In the exchange filing, the company said it is exploring various strategic options for its data centre infrastructure business.