Bharti Airtel on Monday announced that a special committee of directors for fund raising approved the allotment of 3.64 crore shares on a preferential basis to Lion Meadow as partial consideration towards Bharti Telemedia deal.
Lion Meadow Investment is an an affiliate of Warburg Pincus. Bharti Airtel will buy back 20% stake in its DTH arm Bharti Telemedia from Warbug Pincus affiliate entity Lion Meadow Investment for a total consideration of Rs 3,126 crore. As part of the acquisition, the telco will issue 3.64 crore equity shares of Airtel on a preferential basis to Lion Meadow at a price of Rs 600 per share.
In a regulatory filing during market hours on Monday, Bharti Airtel said, "the Special Committee of Directors for fund raising of the company at its meeting held today, 22 March 2021, approved the allotment of 36,469,913 equity shares of the face value of Rs 5 each fully paid up, on a preferential basis to Lion Meadow Investment, an affiliate of Warburg Pincus LLC at an issue price of Rs 600 per equity share (including a premium of Rs. 595 per equity share) as partial consideration other than in cash against the acquisition of 102,040,000 equity shares, constituting 20% of the equity share capital of Bharti Telemedia Limited, by the company from Lion Meadow.
As a result, Lion Meadow will hold about 0.664% of the post-issue equity share capital of the Bharti Airtel.
Shares of Bharti Airtel were down 0.64% at Rs 526.85 on BSE.
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On a consolidated basis, Bharti Airtel reported a net profit of Rs 853.60 crore in Q3 FY21 as against net loss of Rs 1,035.30 crore in Q3 FY20. Net sales during the quarter jumped 24.2% year-on-year (Y-o-Y) to Rs 26,517.80 crore.
Bharti Airtel is a global telecommunications company with operations in 18 countries across South Asia and Africa
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