Bharti Airtel to Acquire 97.1 Percent Stake in Beetel Teletech
Tuesday, 02 January 2024, 14:34 IST
Bharti Airtel Services, a wholly-owned subsidiary of Bharti Airtel, has finalized an agreement to acquire a 97.1 percent stake in Beetel Teletech, another company within the Bharti Group. The acquisition involves the purchase of 49.45 lakh shares at a cost of Rs 669 crore. This strategic move aligns with the company's objective of promoting 'Make In India' by fostering indigenization initiatives within its telecom product ecosystem. Additionally, the acquisition aims to enhance distribution and service capabilities, particularly in system integration, primarily catering to the enterprise business segment.
"As a part of group restructuring, Bharti Airtel Services Limited, a wholly-owned subsidiary company of Bharti Airtel Limited has entered into an agreement for the acquisition of 49,45,239 equity shares representing 97.1 percent stake in another Bharti Group company, Beetel Teletech Limited, which also has 49 percent stake in Joint Venture having two manufacturing facilities which produce telecom and networking products including those qualifying for Production Linked Incentive (PLI) Scheme", the filing said adding that this is a cash transaction.
As a result, Beetel will transition into a subsidiary of Bharti Airtel Services. This acquisition is classified as a related party transaction according to SEBI listing regulations. Bharti Enterprises (Holding) Private Limited, Bharti (RM) Holdings Private Limited, Bharti (RBM) Holdings Private Limited, and Bharti (LM) Enterprises Private Limited, which are Bharti Group entities, collectively possess a 97.1 percent stake in Beetel.
Utilizing its internal technical expertise, strong connections with global Original Equipment Manufacturers (OEMs), and a diverse network of numerous channel partners, distributors, and retailers, the company focuses on the creation and provision of technical solutions and services. It also distributes an extensive array of products, spanning from IT peripherals and network solutions to enterprise solutions, fixed landlines, and mobile accessories.
Beetel distributes a host of leading brands including Avaya, HP/Poly, Samsung, Siemens, QSC, RADWIN, Ruckus, RAD, ADVA, and Actelis. Beetel also holds a 49 percent stake in a Joint Venture that has two facilities for manufacturing landlines, telecom and networking products including products that are manufactured in compliance with the 'Production Linked Incentive (PLI) Scheme to Promote Telecom and Networking Products Manufacturing in India' notified by the Ministry of Communications, the BSE filing added.
"As a part of group restructuring, Bharti Airtel Services Limited, a wholly-owned subsidiary company of Bharti Airtel Limited has entered into an agreement for the acquisition of 49,45,239 equity shares representing 97.1 percent stake in another Bharti Group company, Beetel Teletech Limited, which also has 49 percent stake in Joint Venture having two manufacturing facilities which produce telecom and networking products including those qualifying for Production Linked Incentive (PLI) Scheme", the filing said adding that this is a cash transaction.
As a result, Beetel will transition into a subsidiary of Bharti Airtel Services. This acquisition is classified as a related party transaction according to SEBI listing regulations. Bharti Enterprises (Holding) Private Limited, Bharti (RM) Holdings Private Limited, Bharti (RBM) Holdings Private Limited, and Bharti (LM) Enterprises Private Limited, which are Bharti Group entities, collectively possess a 97.1 percent stake in Beetel.
Utilizing its internal technical expertise, strong connections with global Original Equipment Manufacturers (OEMs), and a diverse network of numerous channel partners, distributors, and retailers, the company focuses on the creation and provision of technical solutions and services. It also distributes an extensive array of products, spanning from IT peripherals and network solutions to enterprise solutions, fixed landlines, and mobile accessories.
Beetel distributes a host of leading brands including Avaya, HP/Poly, Samsung, Siemens, QSC, RADWIN, Ruckus, RAD, ADVA, and Actelis. Beetel also holds a 49 percent stake in a Joint Venture that has two facilities for manufacturing landlines, telecom and networking products including products that are manufactured in compliance with the 'Production Linked Incentive (PLI) Scheme to Promote Telecom and Networking Products Manufacturing in India' notified by the Ministry of Communications, the BSE filing added.
