Bharti Infotel to buy out CMax

All-cash acquisition valued at Rs 33 crore

Bharti Infotel, a 100 per cent subsidary of Bharti Tele-Ventures, today announced an agreement with the Analjit Singh-promoted Max Group to acquire its 100 per cent equity stake in C Max Infocomm and its wholly owned subsidary, Comsat Max.

The all cash acquisition is valued at Rs 33 crore and includes a buyout of Comsat Max's VSAT hubs in Mumbai and Delhi, along with 4,300 instilations and a data centre. The deal also involves absorbing 130 telecom personnel from Comsat Max.

CMax Infocom, which is in the business of selling and installing VSAT terminals, holds the entire equity share capital of Comsat Max Ltd., which is a service provider. Bharti Infotel is the fixed line and VSAT arm of Bharti Tele-Ventures Ltd., the country's GSM mobile service operator.

Earlier in the day, Max India Ltd had informed the Bombay Stock Exchange on Monday of its decesion to sell its VSAT unit to Bharti Infotel Ltd.

"The board of directors of Bharti Infotel, in a meeting, will consider a proposal to acquire 100 per cent stake in the existing licensee engaged in providing VSAT, Internet and broadband services," the company informed the Bombay Stock Exchange.

"The agreement includes all assets and liabilities of the businesses, including the hubs in Delhi and Mumbai and a data center in Delhi. The hubs in Delhi and Mumbai will complement Bharti's existing hub in Bangalore, and strengthen Bharti's capabilities to deploy VSAT services across the country," said a release from Bharti.

Max India has exited several businesses in the last few years to focus on its core areas of healthcare delivery and life insurance.