Bharati Airtel on March 19 to ask for the agreement of its shareholders for issuing around 3.64 crore equity shares to Lion Meadow Investment. The issue will be on a preferential basis. The deal will be for an additional 20 percent stake in the DTH arm Bharti Telemedia as per the regulatory filing.
The deal will result in Bharti Airtel acquiring a 20 percent stake from Warburg Pincus affiliate, LMIL in Bharti Telemedia for a sum of Rs 3129 crore.
Bharti Airtel stated that the transaction will be in the form of Airtel issuing 3.64 crore equity shares starting from Rs 600 per share and going up to Rs 1037.8 crore.
The company is set to hold an Extraordinary General Meeting on March 19 2021 for reaching an agreement with its shareholders regarding the issue of shares of the company on a preferential basis through a special resolution.
The creation, offer, issue, and allotment of up to 36469913 shares with a face value of Rs 5 on a preferential basis to LMIL will be done with the approval of the shareholders. According to the filing, the above said issue will only be a partial fulfillment of the 102,040,000 equity shares of Rs 10 each fully paid-up shares of Telemedia currently held by LMIL to the company at a rate of Rs 600 per share.