India’s largest telecommunications services provider, Bharti Airtel has by Ads" href="http://s.igmhb.com/click?v=SU46MTE0MzI5Ojk3Njk6c2lnbiB1cDpkMDMwMmE2YWFmZDJiYjdiZWI5ZmIzYThhNTI3MGM2OTp6LTI1MjctODg0OTA2MzE6bWNyd29ybGQuY29tOjMyNjQwNDo1NThkN2E0ZjVmMmMwZjhmYTk4NWQxNjA0NjUxYTQ5NzpkOTNiYTQ2NTIxY2M0MTBiYjM1Nzc5OGY5ZjcwZmI3NDoxOmRhdGFfc3MsNzI4eDEwMjQ7ZGF0YV9yYyw1O2RhdGFfZmIsbm87OjQ0MjA3OTI6OjowLjAx&subid=g-88490631-aa8ff9c14805418aa3ce0db7c1e0325d-&data_ss=728x1024&data_rc=5&data_fb=no&data_tagname=A&data_ct=image_only&data_clickel=link&data_sid=4b478a320caa4483f904c9f550c69b79" target="a652c_1487831450_mcrworldcom_326404"> signed up a definitive agreement with Telenor South Asia Investment Pte Ltd to acquire Telenor (India) Communications Private Ltd. The deal is expected of Rs 6,800-7,000 crore which consist of Telenor India’s debt of Rs 1,500 crore.
Airtel said in a joint statement that the acquisition is subject to requisite regulatory approvals. The companies said, “The transaction will not trigger any impairment. As of fourth quarter 2016, the remaining value of tangible and intangible assets in Telenor India amounted to NOK 0.3 billion.”
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With this agreement Airtel and Telenor India will merge and Airtel will take over Telenor India once all the necessary approvals are met. The companies added, “As part of the agreement, Airtel will take over outstanding spectrum payments and other operational contracts, including tower lease.”
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Telenor India’s running operations in seven circles, such as Andhra Pradesh, Maharashtra, Bihar, Assam, UP (West), UP (East) and Gujarat, will be merged in Airtel. The statement wrote, “These circles represent a high population concentration and therefore offer a high potential for growth.”
According to this proposed acquisition, Airtel will acquire the transfer of all Telenor India’s assets and customers and additionally boosting oerall customer base and network of Airtel. Airtel will also allow furthering bolstering its spectrum footprint in these seven circles in addition to 43.4 MHz spectrum in the 1800 MHz band.
It is stated in the statement that Telenor India’s services quality provided to customers will be ensured by Airtel during offering them the additional benefits of its innovative product portfolio for accessing superior voice and data services, VAS, mobile banking and domestic and international roaming facilities. Telenor India’s operations and services will be continue as normal by the completion of the transaction.
Bharti Airtel’s Managing Director and CEO (India and South Asia), Gopal Vittal said, “On completion, the proposed acquisition will undergo seamless integration, both on the customer as well as the network side, and further strengthen our market position in several key circles.”
Vittal further added that the transaction, converted into an attractive business proposition with this additional spectrum’s acquisition, has further enhanced their already strong spectrum portfolio. Substantial long-term value for its shareholders will further be created with this proposed transaction.
Telenor Group’s Chief Executive Officer, Sigve Brekke said, “We believe today’s agreement is in the best interest of our customers, employees and Telenor Group. Finding a long term solution to our India business has been a priority for us, and we are pleased with our agreement with Airtel.
The decision to exit India has not been taken lightly. After thorough consideration, it is our view that the significant investments needed to secure Telenor India’s future business on a standalone basis will not give an acceptable level of return.”
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