The issuance of shares is proposed through preferential allotment is subject to shareholders’ approval.
"The proposed transaction is part of company's strategy to align the shareholding of its customer facing products, services and businesses under the same holding group,"Airtel said in a stock exchange filing.
"A full control and ownership over Bharti Telemedia allows Airtel to offer differentiated and converged solutions to customersso as to promote “One Home” strategy," it said.
Commenting on the transaction, Harjeet Kohli, Group Director, Bharti Enterprises said, “DTH is an integral part of our Homes strategy and this transaction is another step towards simplifying the shareholding of our customer facing businesses providing structural flexibility and ease of implementation. Airtel has always enjoyed a close and strategic partnership with Warburg Pincus, across its business verticals and geographies and we are delighted to have them back as part of Airtel’s exciting journey ahead, including in digital businesses.”
“Airtel was one of the earliest and most profitable investments for Warburg Pincus in India. We are delighted to be back as partners in Bharti Airtel
through this transaction. We look forward to capitalising on the broad-based growth that the company is witnessing across its entire portfolio of businesses, including the digital build-outs,” Vishal Mahadevia, managing director and head of Warburg Pincus India said.
Airtel will issue its shares to the Warburg Pincus affiliate at a premium of 0.50 per cent to the floor price determined as per ICDR regulations. The remaining consideration of Rs 937 crore shall be paid in cash on the closing date of the proposed transaction.
"There may also be minor customary closing adjustments not exceeding Rs 100 crore," Airtel said.