Bharti Airtel Services Ltd to acquire 97.1% stake in Beetel Teletech Ltd

As a part of group restructuring, Bharti Airtel Services Limited, a wholly-owned subsidiary company of Bharti Airtel Limited has entered into an agreement for acquisition of 49,45,239 equity shares representing 97.1% stake in another Bharti Group company, Beetel Teletech Limited, which also has 49% stake in Joint Venture having two manufacturing facilities which produce telecom and networking products including those qualifying for Production Linked Incentive (PLI) Scheme.

The target company is into distribution of IT peripherals, network & enterprise solutions, fixed landlines, mobile accessories, etc. including designing & delivery of related technical services. Also, manufacturing of landlines, telecom and networking products through its 49% JV.

This acquisition is a part of Company's strategy to: (a) enable indigenization initiatives within its own ecosystem of telecom products in line with the Government's policy of 'Make In India'; and (b) add distribution and service capabilities (including system integration) largely for Company's enterprise business.

The consideration to be paid is INR 669 crores which has been ascertained on the basis of valuation conducted by an independent valuer.

Shares of Bharti Airtel Limited was last trading in BSE at Rs. 1013.05 as compared to the previous close of Rs. 1032.85. The total number of shares traded during the day was 80617 in over 4624 trades.

The stock hit an intraday high of Rs. 1031.95 and intraday low of 1007.30. The net turnover during the day was Rs. 81957079.00.

Source : Equity Bulls

Keywords

BhartiAirtel INE397D01024 BhartiAirtelServices Acquisition BeetelTeletech