Bharti Airtel’s board of directors has approved the acquisition of 102.04 million shares -- representing 20% of the entire stake -- in Bharti Telemedia from Lion Meadow Investment, a Warburg Pincus affiliate.
The acquisition will see Bharti Airtel issuing up to 36.5 million shares to Lion Meadow on a preferential basis as part of the consideration against the acquisition of the shares in Telemedia.
The remaining consideration of 9.38 billion rupees ($170.9 million) will be paid in cash, bringing the total transaction consideration to 31.26 billion rupees.
SEE: Bharti Airtel subsidiary approves merger with Indus Towers
The equity shares from Bharti Airtel will be issued at 600 rupees per share, representing a 0.5% premium to the floor price determined in accordance with the regulations of the Securities and Exchange Board of India.
Citigroup Global Markets India Private Limited acted as the financial advisor to Airtel and Credit Suisse Securities (India) Private Limited acted as advisors to Warburg Pincus in connection with this transaction.
As at 9.11am, shares in Singtel are trading 3 cents lower or 1.3% down at $2.37.
