Bharti Airtel share price jumped up in the early trade of February 18, acquiring a 20% stake in Bharti Telemedia from Lion Meadow Investment.
Bharti Airtel stock is currently trading 4.21% below 52-week high and also 56.61 above its 52-week low.
The board earlier approved acquisition of nearly 102,040,000 shares of Bharti Telemedia on February 17,2021 from Lion Meadow Investment.
The board have also approved an issuance of up to 36,469,913 shares to Lion Meadow on a preferential basis.
Lion Meadow Investment is an entity of Warburg Pincus as per the report of BSE.
Further, it is important to note that, the share price will be around Rs 600 per equity share issued to Lion Meadow. This share price is nearly around 0.50 percent premium to the current floor price.
Meanwhile, the remaining amount of nearly Rs 9,378 million will be paid in cash on closing day. This will result in total transaction consideration of around Rs 31,260 million.
This proposed transaction is a part of Airtel’s strategy of aligning shareholding of customer-facing products. The company also reported that, this strategy also covers up its services and business under the same name.
This full ownership of Bharti Telemedia will allow Airtel in offering differentiated and also converged solutions to all of the customers. The company is promoting “One Home” strategy.
Check all the recent news updates and share market updates