Bharti Airtel Secures Strong Shareholder Backing for Landmark Africa Stake Consolidation

Bharti Airtel Limited ("Bharti Airtel" or "the Company") today announced that nearly 100% of its shareholders have approved the ongoing transaction to consolidate its stake in key strategic subsidiary Airtel Africa plc, underscoring the highest levels of corporate governance at India's leading communications provider while reinforcing strong investor confidence. The transaction involves Bharti Airtel issuing equity shares to Indian Continent Investment Limited, a promoter group entity, on a preferential basis, in exchange for its 16.31% stake in Airtel Africa.

The proposal received resounding support from shareholders, including public and institutional investors, reflecting confidence in its strategic rationale and long-term value creation potential. The transaction, being a cashless share-swap, presents an opportunity to the Company to acquire a large block and increase its economic interest in a high-growth asset without any incremental leverage or cash outflow. It also simplifies the Group's shareholding structure, and enhances transparency, setting a benchmark in corporate governance and capital efficiency.

Sunil Bharti Mittal, Founder and Chairman, Bharti Enterprises, said, "Airtel Africa is central to our growth strategy and is well positioned to deliver robust performance with an increasing contribution to our consolidated revenues. The company has always operated at the highest standards of corporate governance and financial discipline, and this overwhelming support reinforces the confidence that the investors have in the organization. Structured as a share swap, India's largest ever transaction preserves capital strength for Airtel's core operations and future growth ambitions. As we look ahead, we see significant potential in Africa for long-term shareholder value creation."

The transaction, upon consummation and subject to receipt of all requisite regulatory approvals, will increase Bharti Airtel's effective stake in Airtel Africa to approximately 79%.

This represents a continuation of the Company's calibrated approach to progressively strengthen its ownership in Airtel Africa, a known strategic growth platform in the group.

Shares of Bharti Airtel Limited was last trading in BSE at Rs. 1822.55 as compared to the previous close of Rs. 1782.15. The total number of shares traded during the day was 407106 in over 6738 trades.

The stock hit an intraday high of Rs. 1824.95 and intraday low of 1786.00. The net turnover during the day was Rs. 738044688.00.

Source : Equity Bulls

Keywords

BhartiAirtel INE397D01024 TelecomServices ShareholderBacking Africa StakeConsolidation