Bharti Airtel withdraws new corporate structure scheme announced in April 2021, believes existing biz optimal for leveraging emerging opportunities

5 Jan 2022 , 11:07 AM

Bharti Airtel has withdrawn the scheme of arrangement for the new corporate structure that was announced in April 2021. With that, Airtel’s businesses will continue to be categorised under four key verticals – India, Digital, International and Infrastructure.

As per Airtel, the seminal telecom sector reforms package announced by the Government of India has significantly boosted the outlook and investor confidence for the industry while simplifying the license framework. With a strong balance sheet and 5G ready network, Bharti Airtel (“Airtel”; “Company”) is well-positioned to invest aggressively in the emerging growth opportunities offered by India’s digital economy.

Following this, Airtel stated that the board of directors are “of the view that the existing corporate structure of the Company is, therefore, optimal for leveraging these emerging opportunities and unlocking value while continuing to scale up Airtel’s digital businesses.”

“Therefore, the scheme of arrangement for the new corporate structure announced on April 14, 2021 stands withdrawn,” Airtel added.

Under a modified scheme, the Company, as previously approved by the Board, will merge its wholly-owned subsidiary Telesonic Networks Limited, resulting in consolidation of its fiber assets into Airtel. In addition, Nettle Infrastructure Investments Limited will also be merged with Airtel. As announced earlier, the Company will pursue its plan to eventually fold the DTH business (Bharti Telemedia) into Airtel to move towards the NDCP vision of converged services to customers.

At around 11.02 am, Bharti Airtel was trading at Rs697.25 per piece flat compared to the previous closing on Sensex. The stock has touched an intraday high and low of Rs702.90 per piece and Rs691.85 per piece respectively.