Bharti Airtel, India’s major telecommunications service provider. They have signed a definitive contract with Telenor South Asia Investments to obtain Telenor (India) Communications Private Ltd.
The attainment is subject to requisite regulatory approvals, Airtel claimed in a combined declaration. “The deal will not activate any impairment. The residual value of tangible and incorporeal properties in Telenor India amounted to NOK 0.3 billion,” the companies stated.
According to the contract, Airtel and Telenor India will combine and Airtel will gross over Telenor India as soon as all essential approvals are conventional.
“As a share of the contract, Airtel will take over remaining spectrum payments and other working contracts, with tower lease,” the companies said.
Airtel will obtain Telenor India’s running operations in seven circles – Andhra Pradesh, Gujarat, Bihar, Maharashtra, UP (East), Assam and UP (West).
These circles signify a high population concentration and therefore proposal a high potential for growth. The proposed attainment will include the transfer of all of Telenor India’s assets and customers, further supplementing Airtel’s general customer base and network. It will also permit Airtel to further bolster its range footprint in these seven circles, with the totaling of 43.4 MHz spectrum in the 1800 MHz band.
The declaration clears that Airtel will safeguard quality services to Telenor India’s customers, while presenting them the added benefits of its advanced product portfolio, access to greater voice & data services, mobile banking, domestic/ international roaming facilities and VAS. Telenor India’s operations and services will endure as normal till the inference of the transaction.
The Managing Director and CEO (India and South Asia) Gopal Vitthal, Bharti Airtel added, “On completion, the planned acquisition will undergo seamless addition, both on the customer as well as the network cross, and further fortify our market position in numerous key circles.”
Vittal added that the attainment of additional spectrum through this business, which made an attractive business plan, has further improved their already solid spectrum portfolio. The future transaction will also make significant long-term value for its shareholders presumed the significant synergies.
Chief Executive Officer of Telenor Group, Sigve Brekke, said, “We will trust today’s agreement is in the best attention of our customers, employees and Telenor Group. Conclusion a long term solution to our India business has been a importance for us, and we are happy with our contract with Airtel.
The decision to depart India has not been taken flippantly. After thorough consideration, it is our view that the important investments needed to protected Telenor India’s future business on a standalone foundation will not give an satisfactory level of return.