Bharti Airtel Monday on Monday said it has allotted around 36.47 million preferential shares to a Warburg Pincus affiliate at Rs 600 per share in addition to some cash, for buying out the fund house’s 20% stake in its DTH arm, Bharti Telemedia.
Post the transaction, Lion Meadow Investment, an affiliate of Warburg Pincus, will hold 0.664% in Airtel, India’s second-largest telco said in a stock exchange notice.
In mid-day trade, the Airtel stock was trading 0.2% lower at Rs529 on the BSE Tuesday.
” Special Committee of Directors for Fund Raising’ of the Company has…approved the allotment of 36,469,913…equity shares of the face value of Rs. 5.. each fully paid up, on a preferential basis to Lion Meadow Investment, an affiliate of Warburg Pincus …at an issue price of 600/…as partial consideration other than in cash against the acquisition of 102,040,000 equity shares, constituting 20% of the equity share capital of Bharti Telemedia Limited, by the Company from Lion Meadow,” Airtel said.
As part of the deal announced in February, Airtel was to buy Warburg’s 20% stake in Bharti Telemedia for around Rs 3,126 crore, to be paid primarily by issuing around 36.47 million shares of the telco at Rs 600 per share, and up to Rs 1,037.8 crore in cash.
The special committee was constituted by the second largest telco to outline options for a re-organisation of its businesses, setting in motion plans to sharpen focus on its consumer-facing digital and non-telecom businesses and open up avenues for unlocking value.
“As an outcome …a) Lion Meadow will hold ~ 0.664% of the post-issue equity share capital of the Company; and b) Paid-up equity share capital of the Company stands increased to Rs. 27,460,136,340 divided into 5,492,027,268 equity shares of Rs. 5 each,” said the statement.
Post this transaction paid-up equity share capital of the operator stands increased to Rs. 27,460,136,340 divided into 5,492,027,268 equity shares of Rs 5 each.
These steps are part of Airtel’s reorganisation plan and the operator, which is now Reliance Jio’s closest rival is discussing making Airtel Digital, opening up for monetising as a separate asset in the future. Airtel Digital houses the digital business of the telco.
