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Tag: Bharti Infratel

  • Bharti Airtel to cut direct stake in Infratel by 32%

    Bharti Airtel to cut direct stake in Infratel by 32%

    MUMBAI: Bharti Airtel, the telecom service provider has recently said in an exchange filing that it will lower its stake in Bharti Infratel by selling around 32 per cent stake to Nettle Infrastructure Investments by 18 March.

    Airtel will own 18.3 per cent stake in Infratel after the transfer, down from its current stake of 50.33 per cent.

    The company said, “The Board of Directors of Bharti Airtel Limited, in order to explore a potential monetization of stake in Bharti Infratel Limited (‘Infratel’) in the future, approved sale transfer of up to 32 per cent of Infratel to its wholly-owned subsidiary-Nettle Infrastructure Investments Limited (‘Nettle’)-in its meeting held on December 20, 2018.”

    The shares of Bharti Airtel surged 6 per cent on the BSE on Tuesday and closed at Rs 350.80 a piece, up 5.12 per cent from the previous day’s closing figure.

    Nettle Infrastructure has a 3.2 per cent stake in Infratel. After the transaction, its stake would rise to 35.2 per cent, it said. The price of shares for the deal would be at or around the market price prevailing on the date of acquisition. According to the reports, sector analysts said this transfer of shares would eventually lead to sale of the stake to a third party and help Bharti Airtel raise much-needed funds. Airtel, and the other player, Vodafone Idea, are facing pressure on their financials since the entry of Reliance Jio in late 2016. 

    Bharti Infratel shares fell as much as 3.4 per cent to Rs 309.

  • Bharti Airtel to sell 32% stake in Bharti Infratel

    Bharti Airtel to sell 32% stake in Bharti Infratel

    MUMBAI: On Thursday’s Bharti Airtel board meeting, the telecom company decided to take some vital steps in order to remain in competition of the Jio dominated telecom industry. Bharti Airtel has decided to sell a 32 per cent stake in Bharti Infratel. With this happening, the telco may raise over Rs 15,500 crore.

    Furthermore, the company has also appointed Badal Bagri as its new CFO and KMP which will be effective from 1 March. He will replace the company’s current  global CFO and KMP Nilanjan Roy whose resignation was approved in the BOD meeting. The outcome of the meeting was announced in a regulatory filing on the Bombay Stock Exchange (BSE).

    Exploring fund raising options, the company board agreed to sell stakes to cut the ridden debt and boost its struggling business in the country.

    Confirming its decisions in a regulatory filing, the telco wrote that the board has authorised and, “approved the sale/transfer of up to 591.87 million equity shares (32 per cent) of Bharti Infratel, to its wholly-owned subsidiary, Nettle Infrastructure Investments Ltd, to explore a potential monetisation of its (Bharti) Infratel stake, subject to the approval of shareholders.”

    Additionally, in a separate filing concluding the meeting, it informed that the company “has formed and authorised a ‘special committee of directors for fund raising’ to comprehensively explore/evaluate various options of fund-raising for the company to strengthen its capital structure and balance sheet.”

  • Vodafone Idea board approves merger of Aditya Birla Telecom

    Vodafone Idea board approves merger of Aditya Birla Telecom

    MUMBAI: The board of Vodafone Idea Ltd has approved the merger of Aditya Birla Telecom Ltd (ABTL) with itself while the latter holds an 11.15 per cent stake in telecom tower firm Indus Towers.

    This amalgamation will help Vodafone Idea to have direct shareholding in Indus Towers. The approval has pushed the company one step closer towards monetizing the company’s 11.15 per cent stake in Indus Towers to pare debt.

    “The board of directors of Vodafone Idea Ltd (VIL) … Has considered and approved a scheme of amalgamation of Aditya Birla Telecom Limited (ABTL), a wholly-owned subsidiary of the company, with the company,” Vodafone Idea said in a BSE filing.

    Now, the scheme is subject to approval of the National Company Law Tribunal, Ahmedabad, besides other approvals. However, there will be no change in the shareholding pattern of VIL after completion of the amalgamation.

    Airtel through Bharti Infratel and British telecom firm Vodafone holds around 42 per cent stake each in Indus Towers and ABTL holds 11.15 per cent.

  • CCI approves merger of Bharti Infratel, Indus Towers

    CCI approves merger of Bharti Infratel, Indus Towers

    MUMBAI: The Competition Commission of India (CCI) has finally approved the proposed merger of Bharti Infratel and Indus Towers, two large infrastructure providers. The merger will create a $14.6 billion company that will be among the largest mobile tower entities worldwide with 1.63 lakh towers.

    The Securities and Exchange Board of India (Sebi), National Company Law Tribunal (NCLT) and Department of Telecommunications also need to give the green signal for the merger.

    “We are pleased to inform you that approval of CCI has been received for the proposed merger of Bharti Infratel Limited and Indus Towers Ltd,” said the tower arm of India’s largest telco Bharti Airtel in a regulatory filing to the exchanges as quoted by The Hindu.

    Another stakeholder in Indus Towers is Vodafone and will be issued with 783.1 million new shares in the combined company, in exchange for its 42 per cent shareholding in Indus Towers. The transaction values Vodafone’s shareholding at Rs 284 billion ($4.3 billion).

    A report by Medianama stated that the providence can choose to either receive cash or new shares in exchange for 3.35 per cent stake. The remainder from the total 4.85 per cent shareholding will be exchanged for shares. Bharti Airtel’s shareholding will be diluted from 53.5 per cent in Bharti Infratel today to 37.2 per cent in the combined company.

    Bharti Airtel and Vodafone will jointly control the combined company. The merger is expected to close before the end of the financial year 2018-2019. 

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