According to SEBI regulations, promoter group companies who together hold more than 55 per cent stake in an entity, have to go for a public offer if they acquire more than 5 per cent stake in a single financial year.
SEBI has taken into account equity shares held by Bharti Telecom Ltd, Pastel Ltd and Indian Continental Investment Ltd in calculating the promoter group’s stake.
When contacted, Bharti spokesperson said ICIL, a Bharti Group company, acquired 4.99 per cent in Bharti Airtel in FY 2007-08 and 1.28 per cent in FY 2008-09.
“Both these transactions have been undertaken during two different financial years and are well within the creeping acquisition limit of 5 per cent in each financial year as permitted under the takeover regulations. Therefore, there is no question of breach of any takeover regulation. We have also filed the requisite declarations to the stock exchanges on all these transactions in time.”
“While Pastel Ltd (owned by the Government of Singapore) is classified as a “deemed promoter”, it is not ‘a person acting in concert’ with the Bharti Group. Therefore, the shareholding of Pastel and Bharti Group can not be aggregated while determining the creeping acquisition limit,” the spokesperson said.
Source: The Hindu Businessline