Airtel to give 9.7 lakh equity shares to Tata Teleservices stakeholders

But the Department of Telecom is yet to take this merger on record and is likely to challenge the deal in the Supreme Court.

Bharti Airtel's committee of directors on Friday approved allotting more than 9.7 lakh equity shares and 497 redeemable preference shares to shareholders of Tata Teleservices as part the merger between the two companies.

"970,668 equity shares (in aggregate including fractional entitlements) fully paid up of face value of Rs 5 per share of the company to the eligible equity shareholders of TTML in the ratio of 1 equity share of the company for every 2,014 equity shares held in TTML by eligible equity shareholders of TTML," Airtel said in a BSE filing.

The allocation will include 79,529 Bharti Airtel Limited (BAL) equity shares of Bharti Airtel Fractional Share Entitlement Trust, it said. Bharti Airtel on July 1 announced that the consumer mobile business of Tata Teleservices Ltd (TTSL) has now become its part.

However, the Department of Telecom (DoT) is yet to take this merger on record and is likely to challenge the deal in the Supreme Court.

TTML shareholders holding fully paid-up, redeemable preference shares will get 10 fully paid-up redeemable, non-participating, non-cumulative preference shares of a face value of Rs 100 of Airtel.

Under the composite scheme of arrangement among TTSL and Bharti Hexacom , a subsidiary of Bharti Airtel, and their respective shareholders and lenders, the Sunil Bharti Mittal led company has allocated 467 BAL redeemable preference share (RPS) to TTSL equity holders in proportion to their holding and cash in lieu thereof to the non-resident TTSL equity share.

The committee has approved allocation of 10 BAL RPS to all and not each shareholder holding fully paid up compulsorily convertible preference shares and 10 BAL RPS to all and not each shareholder holding fully paid up optionally convertible preference shares to TTSL shareholders.