The company said the shares will be issued at ₹1,923 apiece, aggregating to about ₹282.2 billion. Airtel said the issue price is above the floor price prescribed under SEBI ICDR regulations and is based on a valuation report obtained from an independent registered valuer.
Following the transaction, Bharti Airtel will increase its stake in Airtel Africa, in which it currently holds 62.73% through its wholly-owned subsidiary Airtel Africa Mauritius Ltd, the filing showed.
Also Read: Bharti Airtel results: Telco profit rises sequentially but misses Street estimatesThe company said the transaction is aimed at consolidating and strengthening its shareholding in a strategic subsidiary. Airtel added that the deal is cashless and leverage-neutral, and is expected to be earnings per share accretive.
According to the filing, Airtel India shares are proposed to be issued at a premium of around 9.5% to the last closing price prior to the relevant date, while Airtel Africa shares are proposed to be acquired at a discount of around 11.6% to the last closing price prior to the relevant date.
The transaction is subject to shareholder approval at an extraordinary general meeting, along with applicable regulatory and statutory approvals, the company said in the exchange filing.
Shares of Bharti Airtel Ltd ended higher on Wednesday, May 13, by 1.39% at ₹1,781.20 on the NSE.
