At meeting held on 17 February 2021The Board of Bharti Airtel at its meeting held on 17 February 2021 has approved the acquisition of 102,040,000 shares (representing 20%) of Bharti Telemedia (Telemedia) by the Company from Lion Meadow Investment Ltd., a Warburg Pincus entity (Lion Meadow).
The Board has also approved the issuance of upto 36,469,913 equity shares of the Company on a preferential basis to Lion Meadow to substantially discharge consideration against the aforesaid acquisition of equity shares of Telemedia.
Remaining consideration of Rs 937.8 crore shall be paid in cash on the closing date, resulting in total transaction consideration of Rs 3126 crore.
Further, there shall be certain mutually agreed minor pricing adjustments (not exceeding Rs 100 crore) based on the audited financial statements of Telemedia for the current financial year ending on 31 March 2021 which, if any, shall be settled within 14 business days of adoption of financial statements by the Board of Directors of Telemedia.
The transaction consideration shall be subject to deduction of withholding taxes, if any, as per the applicable Income Tax Laws.
The equity shares to be issued by the Company to Lion Meadow on a preferential basis, shall be at a price of Rs 600 per equity share i.e. at~ 0.50% premium to the floor price determined in accordance with the ICDR Regulations.
Upon the completion of the aforesaid transactions, Telemedia will become a wholly owned subsidiary of the Company.
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