You are here: Home » Companies » News » Telecom
Business Standard

Airtel to transfer optical fibre biz to Telesonic Networks

Firm to hand over its cable business on a cash consideration of Rs 4,564 cr

Press Trust of India  |  New Delhi 

Bharti Airtel, Airtel

Telecom major would the optical fibre business to its wholly-owned subsidiary for a valuation of up to Rs 5,650 crore, according to a regulatory filing on Wednesday.

The board of directors in its meeting on Tuesday, “approved the scheme of arrangement between (transferor company) and Limited (transferee company)... for the of the optical fibre of the transferor company to the transferee company, a subsidiary of the transferor company, by way of a slump sale”, it said.

The optical fibre business of includes both underground and overground fibres.

Bharti Airtel said it is transferring the based on cash consideration of Rs 4,564.7 crore. It would be subject to upward adjustment on account of incremental capital expenditure, working capital and the like incurred by the transferor company up to the date the deal is signed.

"However, the overall consideration shall in no event exceed Rs 5,650 crore," the filing said.

Limited, engaged in "designing, planning, deploying, optimising and managing broadband and fixed telephone networks across India...does not belong to the promoter/promoter group/group companies", it said.

"The proposed transaction is between a holding company and its wholly-owned subsidiary company," the filing said.

Bharti Airtel stock closed at Rs 538.40, up 8.19 per cent, on BSE.

First Published: Thu, November 02 2017. 03:00 IST