Bharti's decision to
buy Telenor India sends stock soaring 10%
The stock has seen strong movements, posting a rise of over 18 percent in the past one year. It touched its 52-week high of Rs 390.55 on Thursday. Shares of Bharti Airtel rose over 10 percent intraday Thursday after the company announced that it is acquiring Telenor India. The company entered into a definitive agreement with Telenor South Asia Investments to acquire Telenor (India) Communications, subject to approvals from the regulator, it told the exchanges on Thursday. The cost of this acquisition is still under finalisation. Sources tell CNBC-TV18 that the deal’s value could be pegged roughly at Rs 6,800-7,000 crore, which includes Telenor India’s debt of Rs 1,500 crore. As part of the deal, Airtel will buy Telenor India's running operations in seven circles—Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. These circles, Airtel says, represents a high population concentration and a high potential for growth. The firm will also get additional 43.4 MHz spectrum in 1800-MHz band from Telenor India.
"The acquisition of additional spectrum through this transaction has further enhanced our already solid spectrum portfolio. The proposed transaction will also create substantial long term value for our shareholders given the significant synergies," said Gopal Vittal, Managing Director and CEO (India and South Asia), Bharti Airtel, in a statement. Meanwhile, the telecom major on Wednesday announced strategic stake purchase through its subsidiary Bharti Airtel Services in fintech startup Seynse Technologies, which runs a digital lending platform. The stock has seen strong movements, posting a rise of over 18 percent in the past one year. At 09:20 hrs Bharti Airtel was quoting at Rs 390.55, up Rs 29.40, or 8.14 percent on the BSE. It touched a 52-week high of Rs 390.55
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The stock has seen strong movements, posting a rise of over 18 percent in the past one year. It touched its 52-week high of Rs 390.55 on Thursday. Shares of Bharti Airtel rose over 10 percent intraday Thursday after the company announced that it is acquiring Telenor India. The company entered into a definitive agreement with Telenor South Asia Investments to acquire Telenor (India) Communications, subject to approvals from the regulator, it told the exchanges on Thursday. The cost of this acquisition is still under finalisation. Sources tell CNBC-TV18 that the deal’s value could be pegged roughly at Rs 6,800-7,000 crore, which includes Telenor India’s debt of Rs 1,500 crore. As part of the deal, Airtel will buy Telenor India's running operations in seven circles—Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. These circles, Airtel says, represents a high population concentration and a high potential for growth. The firm will also get additional 43.4 MHz spectrum in 1800-MHz band from Telenor India.
"The acquisition of additional spectrum through this transaction has further enhanced our already solid spectrum portfolio. The proposed transaction will also create substantial long term value for our shareholders given the significant synergies," said Gopal Vittal, Managing Director and CEO (India and South Asia), Bharti Airtel, in a statement. Meanwhile, the telecom major on Wednesday announced strategic stake purchase through its subsidiary Bharti Airtel Services in fintech startup Seynse Technologies, which runs a digital lending platform. The stock has seen strong movements, posting a rise of over 18 percent in the past one year. At 09:20 hrs Bharti Airtel was quoting at Rs 390.55, up Rs 29.40, or 8.14 percent on the BSE. It touched a 52-week high of Rs 390.55
Read more for Best Stock Tips-http://aceinvestmentadvisory.com
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