Bharti Airtel, India's largest telecom operator, has entered into an agreement to acquire Telenor (India) Communications.
Airtel will acquire Telenor’s running operations in seven circles – Andhra Pradesh, Bihar, Maharashtra, Gujarat, Uttar Pradesh (West), Uttar Pradesh (East), and Assam – the company said in a press release.
"It will also enable Airtel to further bolster its strong spectrum footprint in these seven circles, with the addition of 43.4 MHz spectrum in the 1,800 MHz band," the release added.
The proposed acquisition will also include the transfer of all of Telenor India’s assets and customers. Telenor India’s operations and services will continue as normal until the completion of the transaction.
The acquisition will enhance the company's spectrum portfolio and create substantial long-term value for shareholders, Gopal Vittal, Bharti Airtel’s managing director and chief executive officer for India and South Asia said in the press release.
The acquisition of additional spectrum through this transaction, which made an attractive business proposition, has further enhanced our already solid spectrum portfolio. The proposed transaction will also create substantial long term value for our shareholders given the significant synergies.Gopal Vittal, Managing Director and CEO (India and South Asia), Bharti Airtel
The decision to exit India has not been taken lightly, Telenor Group CEO Sigve Brekke said in the press release.
After thorough consideration, it is our view that the significant investments needed to secure Telenor India’s future business on a standalone basis will not give an acceptable level of return.Sigve Brekke, CEO, Telenor Group
In an interview to BloombergQuint’s Menaka Doshi in January, Sunil Mittal, the chairman of Bharti Enterprises, had said that it was in "India’s interest to give good exit opportunities to companies like Telenor” even as he hinted at a deal between the two companies.
Yes. So there is a deal potentially to be had, there will be some deal in terms of Telenor and I don’t know if it will be us.Sunil Mittal, Chairman, Bharti Enterprises on 21 January
(This article was originally published on BloombergQuint.)
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