Shareholders of Bharti Airtel has approved the proposed merger with Tata Teleservices, according to the company. The merger which is now looking for the approval from National Company Law Tribunal (NCLT) is expected to be finished by the end of March 2019. In a regulatory filing, Airtel revealed that 99.97% of shareholders voted in favour of the merger. "The special resolution to approve the proposed composite scheme of arrangement between Tata Teleservices, Bharti Airtel and Bharti Hexacom received 99.97% voting in favour of the resolution," Bharti Airtel said in a regulatory filing.
There was 100% voting in favour of the resolution from the promoter and promoter group, as well as public institutions category. About 99.97% votes were cast in favour of the proposal by the public non-institutions shareholders, it added. The filing detailed out the "voting results of the meeting of equity shareholders of Bharti Airtel" convened on August 28 as per the directions of the Principal Bench of the NCLT in New Delhi.
Airtel's Subscriber Base to Get a Boost
With the merger of Tata Teleservices, Airtel' subscriber base will receive a major boost. Airtel is currently the leading telecom operator in India with the subscriber base close to 350 million, however, the merged entity of Idea-Vodafone will dethrone Airtel to become the leading telco in terms of subscriber base with over 430 million users under its belt.
Tata Tele Maharashtra Seeks Shareholders' Nod to Raise Rs 20,000 Crore
In other news, Tata Teleservices Maharashtra Limited has sought approval of shareholders to raise up to Rs 20,000 crore, including from its promoters, mainly for repayment of debt. The company might initially accept Inter-Corporate Deposit (ICD) "from the promoters including Tata Teleservices Ltd (TTSL) and/or Tata Sons Ltd (TSL) and/or Panatone Finvest Ltd (Panatone)...," according to a notice sent out to shareholders.
This is to meet the requirement for additional funds worth Rs 20,000 crore, it added. According to the notice, the ICD might be later converted into redeemable preference shares.
Similarly, ICD of Rs 5,220 crore already availed and those which might be availed from TTSL, TSL and Panatone could also be converted into non-cumulative redeemable preference shares, if the three entities seek to do so, as per the notice.
Tata Teleservices (Maha) Ltd has proposed to issue up to 200 crore redeemable preference shares of Rs 100 each for cash at par aggregating up to Rs 20,000 crore on preferential basis to TTSL, TSL or Panatone in tranches.
TTML said the fund-raising plans would be placed for shareholders' approval at the annual general meeting to be held on September 29. On August 10, the company's board approved the proposal to raise up to Rs 20,000 crore through issuance of non-cumulative redeemable preference shares, non-convertible debentures or ICDs and loans.
"The funds raised through one or more options will be utilised primarily for repayment/ prepayment of existing debt/ loans of the company, including deferred payment liability to Department of Telecommunications for spectrum and/ or for the redemption of the existing Redeemable Preference Shares issued earlier...," the company said, according to PTI.