Airtel approves transfer of 25% equity in DTH arm to subsidiary co Nettle
MUMBAI: Telecom operator Bharti Airtel has decided to transfer 25% equity shares in its direct to home (DTH) arm Bharti Telemedia to its wholly owned subsidiary Nettle Infrastructure Investments.
The transaction has been approved by the Bharti Airtel board. The date of sale of the transaction is subject to regulatory approvals. The company will receive cash as consideration for the sale.
“We wish to inform you that the Board in its meeting held on January 18, 2018, has approved the transfer of 25% equity shares of Bharti Telemedia Limited (Subsidiary Company) to its wholly owned subsidiary, Nettle Infrastructure Investments Limited,” Bharti Airtel said in a filing to the BSE.
The company further said that the transaction will fall within the purview of related party transactions and the same has been done at arm’s length.
The stake transfer to Nettle does not include equity to be sold to private equity firm Warburg Pincus. Bharti Airtel has agreed to sell 20% equity stake in Bharti Telemedia to Warburg Pincus for approximately $350 million.
Bharti Telemedia, which provides DTH service under Airtel Digital TV brand, had a turnover of Rs 3435.8 crore in FY17 comprising 6% of Airtel total revenue. The DTH arm had a negative net-worth of Rs 2782.7 crore.
In a separate filing, Airtel’s board has approved the acquisition of 5% stake in its subsidiary Indo Teleports (also known as Bharti Teleports) for Rs 2.3 crore. Bharti Airtel already holds 95% stake in Indo Teleports.
The company wants to consolidate its shareholding in the company. The teleport operator’s revenue in FY17, FY16, and FY15 had stood at Rs 31.9 crore, Rs 28.5 crore, and Rs 26.9 crore.