Bharti Airtel plans to acquire 20 per cent stake in Bharti Telemedia from Warburg Pincus affiliate, LMIL, for Rs.3,126 crore.
It will receive shareholders’ approval on March 19 for issuance of 3.64 crore equity shares to Lion Meadow Investment Ltd.
This is on preferential basis, to execute its deal for buying additional 20 per cent stake in its DTH arm Bharti Telemedia.
Moreover, the company will discharge the transaction primarily through issue of 3.64 crore equity shares.
This is at a price of Rs 600 per share and up to Rs 1,037.8 crore in cash.
It will seek the members’ nod on the proposal at an Extraordinary General Meeting on March 19, 2021.
The aim is to create, offer, issue and allot up to 36,469,913 equity shares of the face value of Rs 5 each fully paid up.
This is as partial consideration other than cash to sell 102,040,000 equity shares of Rs 10 each of Telemedia.
Further, LMIL is holding the fully paid up shares of the company at a price of Rs 600 per equity share.
The proposed transaction is Airtel’s strategy to align customer’s shareholding facing products, services and businesses under the same holding group.
This allows Airtel to offer differentiated and converged solutions to customers to promote its ‘One Home’s strategy.
DTH is an integral part of it’s Home’s strategy as stated by the company. It is another step towards simplifying the shareholding of customers by providing structural flexibility and ease of implementation.
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