Business Daily from THE HINDU group of publications
Thursday, Jul 05, 2007
ePaper
Business Daily from THE HINDU group of publications Thursday, Jul 05, 2007 ePaper |
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Info-Tech
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Mergers & Acquisitions
Our Bureau New Delhi, July 4 Singapore Telecom Ltd and Bharti Enterprise, the largest shareholders of Bharti Airtel, will have the first right to buy the stake to be acquired by Singapore government’s investment arm Temasek. “If Temasek decides to exercise the option to purchase the shares from Bharti, and should Temasek decide to sell these shares thereafter, Bharti and SingTel have first rights,” a Bharti source said. Bharti Enterprises on Tuesday said that one of its group companies has decided to grant an option to acquire an indirect stake in Bharti Airtel Ltd to a wholly owned subsidiary of Temasek Holdings (Private) Ltd, Singapore. Deal may fetch $2 b
The option arrangement will result in Temasek acquiring 4.99 per cent share in Bharti Airtel Ltd. The deal value was not disclosed since Temasek has not yet exercised the option. But going by the current share price value of Bharti Airtel, the deal could fetch nearly $2 billion. A Bharti spokesperson said Temasek, after it exercises the option to acquire the stake in Bharti Airtel, will be bound under the agreement that at the time of exit it has to sell these shares to either one or both Bharti and SingTel. It cannot sell the stake to any third party. Retain controlling stake
Post the deal, Bharti said that it will continue to maintain a controlling interest of over 45 per cent in Bharti Airtel Ltd through its subsidiary Bharti Telecom Ltd. If the deal goes through Temasek Holding will increase its stake in Bharti Telecom. SingTel, in which Temasek has a 56 per cent stake, holds 30 per cent stake in Bharti. The deal follows a recent move by Vodafone to sell 5.6 per cent stake in Airtel back to Bharti promoters for $1.6 billion.
Related Stories: More Stories on : Mergers & Acquisitions | Telecommunications | Bharti Tele-Ventures Ltd
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