Hindustan Times (Lucknow) - - FRONT PAGE - Indo Asian News Ser­vice let­ters@hin­dus­tan­ n

NEW DELHI : Bharti Air­tel and Tata on Thurs­day an­nounced that they have en­tered into an un­der­stand­ing to merge Con­sumer Mo­bile Busi­nesses of Tata Te­le­ser­vices Lim­ited and Tata Te­le­ser­vices Ma­ha­rash­tra Lim­ited into Bharti Air­tel.

The ac­qui­si­tion is sub­ject to req­ui­site reg­u­la­tory ap­provals, the com­pa­nies said in a state­ment with­out re­veal­ing the ac­qui­si­tion amount.

The merger is be­ing done on a debt-free cash-free ba­sis, ex­cept for Bharti Air­tel as­sum­ing a small por­tion of the un­paid spec­trum li­a­bil­ity of Tata to­wards DoT, which is to be paid on a de­ferred ba­sis.

As part of the agree­ment, Bharti Air­tel will ab­sorb Con­sumer Mo­bile Busi­nesses of TTSL and TTML across the coun­try in 19 cir­cles, 17 un­der TTSL and two un­der TTML.

“This is a sig­nif­i­cant de­vel­op­ment to­wards fur­ther con­sol­i­da­tion in the In­dian mo­bile in­dus­try,” said Bharti Air­tel chair­man Su­nil Bharti Mit­tal. “On com­ple­tion, the pro­posed ac­qui­si­tion will un­dergo seam­less in­te­gra­tion, both on the cus­tomer as well as the net­work side, and fur­ther strengthen our mar­ket po­si­tion in sev­eral key cir­cles. The ac­qui­si­tion of ad­di­tional spec­trum made an at­trac­tive busi­ness propo­si­tion.”

The Bharti Board, which met on Thurs­day, has ap­proved this trans­ac­tion. The Boards of Tata Sons, TTSL and TTML, too, have given their ap­proval.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.