Telecom main Bharti Airtel will switch the optical fibre enterprise to its wholly owned subsidiary Telesonic Networks for a valuation of up to Rs. 5,650 crores, as per a regulatory submitting on Wednesday.
The board of administrators in its assembly yesterday “has approved the scheme of arrangement between Bharti Airtel (“Transferor Company”) and Telesonic Networks Limited (“Transferee Company”)…for the transfer of the optical fibre cable business of the transferor company to the transferee company, a subsidiary of the transferor company, by way of a slump sale”, it mentioned.
The optical fibre enterprise of Bharti Airtel contains each underground and overground fibres.
Bharti Airtel mentioned it’s transferring the cable enterprise based mostly on money consideration of Rs four,564.7 crore. It will likely be topic to upward adjustment on account of incremental capital expenditure, working capital and the like incurred by the transferor firm up to the date the deal is signed.
“However, the overall consideration shall in no event exceed Rs. 5,650 crores,” the submitting mentioned.
Telesonic Networks Limited, engaged in “designing, planning, deploying, optimising and managing broadband and fixed telephone networks across India…does not belong to the promoter/promoter group/group companies”, it mentioned.
“The proposed transaction is between a holding company and its wholly owned subsidiary company,” the submitting mentioned.
Bharti Airtel inventory closed at Rs. 538.40, up eight.19 %, on BSE.
Adapted From: Gadgets360