Share price of Vodafone Idea jumped over 5 percent followed by Bharti Infratel which gained 3 percent. MTNL and Bharti Airtel share price gained a percent each.
Telecom stocks have been in focus on September 1 as Bharti Infratel has informed the exchanges that its Board of Directors discussed, in a meeting held on August 31, the scheme of arrangement with Indus Towers and related agreements, and has decided to proceed with the merger.
Based on the adjustments, the company shared likely shareholding structure (subject to change based on agreed closing adjustments) as Vodafone with 28.2 percent stake, Providence Equity Partners (PEP) with 3.2 percent stake, total share swap for Indus as 31.4 percent, and Infratel shareholders with 68.6 percent in the merged company.
The merged company will see Airtel hold 36.7 percent stake, followed by Vodafone UK with 28.2 percent stake, and Providence with 3.2 percent stake, while the balance 31.6 percent will be held by public shareholders, CNBC-TV18 reported.
Share price of Vodafone Idea jumped over 5 percent followed by Bharti Infratel which gained 3 percent. MTNL and Bharti Airtel share price gained a percent each.
Singapore-based investment firm Integrated Core Strategies (Asia) acquired Rs 1,952.9 crore worth shares in telecom operator Bharti Airtel via an open market transaction on August 31.
It bought 3,80,10,584 equity shares of Bharti Airtel (representing 0.69 percent of its total paid-up equity) at Rs Rs 513.79 per share, bulk deals data available on the National Stock Exchange showed.
On the other hand, Reliance Communications was down over 4 percent followed by GTL Infra and Tejas Networks.
“After deliberations the Board has authorised the chairman to proceed with the scheme and comply with other procedural requirements to complete the merger – including approaching the National Companies Law Tribunal (NCLT) to make the scheme effective subject to certain procedural condition precedents,” Bharti Infratel said in a statement.
“This is a basis cash consideration chosen by Vodafone Idea for its 11.15 percent shareholding in Indus which will be based on 60 days VWAP as at closing date (and agreed closing adjustments) for approximately Rs 4,000 crore,” the statement added.
Also, the Supreme Court is all set to deliver its verdict in the matter pertaining to the repayment of adjusted gross revenue (AGR) dues by telcos on September 1. A bench led by Justice Arun Mishra will deliver the judgement.
The judgement is expected on three key points, with the main one being a time frame for the staggered repayment of AGR dues by telcos. While the Department of Telecommunications (DoT) had sought a 20-year time frame, companies like Bharti Airtel and Vodafone Idea had sought 15 years.
The other issues on which a judgement is expected are whether or not spectrum and the right to use it can be transferred, assigned or sold under the Insolvency and Bankruptcy Code (IBC), and the additional liabilities, if any, on Reliance Jio and Bharti Airtel for the past dues of Reliance Communication, Videocon and Aircel.
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