Airtel-Google Deal Is Now Approved: 7.11 Crore Shares Of Airtel Now Belongs To Google For 1.2% Share
A regulatory filing on July 14 revealed that Telecom firm, Bharti Airtel has approved the preferential allotment of 7.11 crore shares to US-based tech major Google, at an issue price of Rs 734 per share.
Bharti Airtel Shares Allotment
Earlier in the day, the “Special Committee of Directors for Preferential Allotment”, met and gave a nod to this decision, as informed by Airtel to the stock exchanges.
Further, the filing mentions that the committee approved the “allotment of 71,176,839 equity shares of the face value of Rs 5 each fully paid up, on preferential basis to Google International LLC (Google) at an issue price of Rs 734 per equity share (including a premium of Rs. 729 per equity share),”.
Once this happens, Google will hold 1.2 percent of total post-issue equity shares of the company, Airtel noted.
Filing said that the paid-up equity share capital of the company will stand increased to “Rs 28,306,517,827.50 divided into 5,563,231,650 fully paid-up equity shares of Rs 5 each and 392,287,662 partly- paid-up equity shares of Rs 5 each,”.
Prior to this, Google had announced an investment of $700 million to acquire a 1.28 percent stake in Airtel at Rs 734 per share in January.
Besides this, Google also said that it would also invest another $300 million in multi-year commercial agreements.
This will include investments in making smartphones affordable across price range.
Accelerate Cloud Adaptation
The search engine maker will also look at India-specific use cases for 5G, to accelerate cloud adoption, particularly for the small and medium businesses.
Bharti Airtel shares were trading at Rs 642.10 at the BSE and Rs 641.65 at the NSE, down by 1.85 percent and 1.35 percent, respectively, as against the previous day’s close.