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Rs 430-cr share-swap/cash deal for 67.5 pc pie — Bharti to buy Shyam stake in Hexacom

Our Bureau

New Delhi , April 5

BHARTI Tele-Ventures has reached an agreement with the Shyam Group to acquire their 67.5 per cent equity stake in Hexacom India Ltd for a consideration of Rs 430 crore. The said consideration includes premium for majority shareholding and majority on the board of directors.

According to an official statement from the company, the transaction is principally a share swap deal, wherein shares/optionally convertible redeemable debentures (OCRD) of Bharti Tele-Ventures are proposed to be issued to the Shyam Group as a swap for their holdings in Hexacom.

The consideration of Rs 430 crore is proposed to be funded by way of issue of equity shares of Bharti Tele-Ventures for Rs 75 crore, issue of OCRDs for Rs 300 crore and balance in cash.

The acquisition is subject to a right of first refusal with the other existing shareholder of Hexacom, Telecommunication Consultants India Ltd (TCIL), regulatory and other necessary/applicable approvals. This acquisition would give Bharti a presence in Rajasthan, thereby expanding its footprint all over India.

Bharti also intends to consolidate its stake in Hexacom as and when an appropriate opportunity comes its way. Ambit Corporate Finance advised Bharti on the transaction, while Prime Securities advised the Shyam Group.

Hexacom operates GSM mobile network in Rajasthan and has over 2.5 lakh subscribers as on March 31, 2004, with over 44 per cent market share of GSM market of Rajasthan. Hexacom also has a licence to offer GSM mobile services in North-East.

According to industry sources, TCIL, the public state undertaking which holds the remaining stake in Hexacom, is also seeking to sell out and exit the mobile business.

In all probability, it would seek to sell out to the Bharti group, giving the company 100 per cent stake in Hexacom, they said.

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