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Bharti Airtel awards 1.2% stake to Google for $700 million

Bharti Airtel awards 1.2% stake to Google for $700 million

Admin | Post Sunday, 17 July 2022 - 09:57 PM | 70

Telecoms operator Bharti Airtel said on Thursday it had awarded over 7.1 crores of shares to internet major Google for Rs. 730 each.

The award is part of Google?s commitment to invest $1 billion (nearly Rs. 8,000 crore) with Airtel, which included a stake in the company worth $700 million (nearly Rs. Rs. 5,600 crore), Airtel said in a regulatory filing.

?The Special Committee of Directors for the Preferential Allotment of the Company, at its meeting held today July 14, approved the allotment of 71,176,839 shares with a par value of Rs 5 each fully paid, on preferential basis to Google International LLC (Google) at an issue price of Rs. 730 per share,? Airtel said.

Google made the investment as part of its $10 billion (nearly Rs 79,900 crore) Indian digitization fund.

Of the total investment with Airtel, $300 million (nearly Rs. 2,400 crore) has been earmarked for the implementation of business deals, which include investments in scaling Airtel?s offerings which cover a range of devices to consumers through innovative affordability programs as well as other offerings aimed at accelerating digital access and inclusion in India?s digital ecosystem.

?Google will own approximately 1.2% of the company?s total post-issuance shares, or approximately 1.17% on a fully diluted basis,? the filing said.

Google also invested Rs. 33,700 crores to buy a 7.73% stake in Jio Platforms just days after the announcement of India?s Digitization Fund.

The deal between Google and Airtel was recently approved by India?s Competition Commission (ICC), clearing Google?s proposed acquisition of a minority stake in telecommunications giant Bharti Airtel. The deal was cleared based on changes proposed by the acquirer, according to an official statement.