Bharti Airtel will buy 97.1% stake in this big telecom company, big jump in shares
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Bharti Airtel: Bharti Airtel’s subsidiary Bharti Airtel Services, one of the largest companies in the telecom sector, has acquired Beetle Teletech (Beetel Teletech) has announced the acquisition of the company. Giving information to the market on behalf of the company in the exchange filing, it has been said that Bharti Airtel Services Limited, a wholly owned subsidiary of Bharti Airtel Limited, has acquired 49,45,239 equity shares representing 97.1 percent stake in another Bharti Group company. An agreement has been made for the acquisition. Beetel Teletech Ltd, which has a 49 per cent stake in the joint venture with two manufacturing facilities, produces telecom and networking products, including products that qualify for the production linked incentive (PLI) scheme. The cost of the entire acquisition is being estimated at ₹669 crore. The company has said that the acquisition is part of the acquisition and distribution of telecom products in line with the government’s Make in India policy.
Airtel shares jumped
There is sluggishness in the Indian market today. However, after the news of Bharti Airtel buying stake in Beetel, there was a rise in the company’s shares. The company’s shares jumped more than one percent at 10.20 am to reach the day’s highest level of 1024.55. However, at 11 am the company’s shares were trading at 1,019.45 with a rise of 0.63 i.e. 6.40 points. In the last six months, Bharti Airtel shares have given a return of 15.96 percent to investors. Whereas, investors have received a return of 25.32 percent in one year.
What does Beetel Teletech do?
Beetle Teletech was established on 30 March 1999. The company works on peripherals, networks and enterprise for fixed landline and mobile accessories. Beetel distributes leading brands including Avaya, HP/Poly, Samsung, Siemens, QSC, Redwin, Ruckus, RAID, ADVA and Actelis. Beetel also has a 49 percent stake in a joint venture. It has two facilities for manufacturing landline, telecom and networking products.
How one company acquires another company
For a company to acquire another company (merger and acquisition), the two companies first negotiate. The boards of directors of both companies agree to an agreement to plan the acquisition. In this, details of acquisition, time limit, valuation of property, stock currency etc. are adjusted. Once the plan is made and agreed upon, Naubat (Form 23C and Form 1 Naubat) is issued. This includes the process and details of the acquisition. After issuing Naubat, it is presented to the Supreme Court or the Naubat Approval Officer. After receiving the approval, implementation of the acquisition is started as per the plan. In this, one company acquires control of the property, stock, and assets of another company. Following the acquisition, the various process, production, finance, and management systems of both companies are integrated. The various divided structures are transformed into a consolidated and organized structure.
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