Google International and Airtel have
entered into an investment agreement to buy a minority and non-controlling
stake of 1.28 percent of equity share capital in the telecom player.
Along with the investment agreeement, both
companies through their affiliates have also entered into certain commercial
deals. The parties also intend to enter into certain other commercial
arrangements in future, as per the release.
Deals beyond a certain threshold require
approval from the regulator, which keeps a tab on unfair business practices in
the market place.
Google International is a wholly-owned
subsidiary of Google. The latter is a wholly-owned subsidiary of Alphabet.
Earlier in January this year, Google
announced its plan to invest up to $1 billion in Airtel in a move that could help
bolster the Indian telecom operator's digital offerings, the companies said.
The investment includes a $700 million
equity investment in Airtel at a price of Rs. 734 per share and up to $300
million towards implementing commercial agreements, including investments in
scaling Airtel's offerings, the companies said.
The share issue is subject to regulatory
and shareholder approval and comes months after Airtel raised up to Rs. 21,000
crore through a sale of shares to existing shareholders.
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