The Hindu Business Line : Bharti acquires Rajasthan circle; to invest Rs 200 cr

BHARTI Tele-ventures will be investing Rs 200 crore in the next eighteen months as part of its expansion plans for the Rajasthan circle, which it formally acquired today.

Bharti today acquired a majority 67.5 per cent stake in Hexacomm, a mobile operator in Rajasthan with 41 per cent market share, according to an official release. Post-acquisition, Bharti has a consumer base of 2.65 lakh. It plans to raise this to five lakh consumers.

The entire acquisition is principally a share swap deal wherein share/optionally convertible redeemable debenture (OCRD) of Bharti Televentures have been issued to the Shyam Group as a swap for its holding in Hexacomm. The Rs 430-crore deal was funded by issue of OCRD for Rs 375 crore and the balance in cash.

Hexacomm operates its mobile services under the aegis of the Oasis brand. The acquisition deal fructified after Telecom Consultants India Limited (TCIL), a 30 per cent stakeholder in Hexacomm decided not to exercise its right of refusal.

The Rajasthan circle is Bharti's 16th circle of GSM-based cellular services operations. Bharti will change the brand in Rajasthan from Oasis to Airtel within 90 days from today.

The Rajasthan circle acquisition follows a failed attempt to acquire Canadian company TIW's 27 per cent stake in Hexacom. Shyam Group acquired the Hexacomm stake.