Bharti Airtel jumps 1.6% on stake sale

BL Internet Desk Chennai | Updated on January 09, 2018

Shares of Bharti Airtel gained in Monday's trade as Bharti Telecom is set to buy up to 4.62 per cent of Bharti Airtel's stake.

Bharti Telecom Ltd, the holding company of Bharti Airtel Ltd, will acquire up to 4.62 per cent stake in India’s largest telco, the company informed the National Stock Exchange on Monday.

Following the development, the stock gained 1.59 per cent to Rs 492.80 on the BSE. It opened at Rs 490 and touched an intraday high of Rs 497.75 and a low of 486.70.

PTI reports:

Bharti Telecom, promoter firm of Bharti Airtel, will acquire additional 4.62 per cent in the telecom major at market price on or after November 3, as per a regulatory filing.

Bharti Telecom will acquire 184,710,183 equity shares of Bharti Airtel from another promoter firm of the telecom major, Indian Continent Investment Ltd (ICIL), at Rs 417.35 per share derived with a weighted average market price of 60 days trading period, as per the filing.

With this transaction, Bharti Telecom's stake in the company will increase 50.1 per cent in Bharti Airtel from 45.48 per cent and ICIL stake will come down to 2.03 per cent.

“The acquirer confirms that the acquisition price would not be higher by more than 25 per cent of the price computed in point 6 (which is Rs 417.35 a unit),” the filing said.

This implies transaction in the books of Bharti Telecom and ICIL will be to the tune of around Rs 7,700-9,600 crore.

People privy to the process, who did not wished to be named, said that as per the filing there will no cash outgo for the Bharti Group for this transaction and is being done for accounting and financial reporting purposes.

Published on October 30, 2017

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