A few days back, the Competition Commission of India (CCI) approved Bharti Airtel and Google’s deal for $700 million. The actual deal between the companies was for $1 billion, but $300 million out of that was for forming multi-year agreements, and $700 million were for getting a 1.28% stake in the company.
On Thursday, Bharti Airtel said that in a meeting held between the ‘Special Committee of Directors for Preferential Allotment’ on July 14, 2022 – Google had been approved to receive 71,176,839 equity shares of face value Rs 5 each fully paid up on a preferential basis at an issue price of Rs 734 per equity share (including Rs 729 premium amount).
Here are the key points of the deal that you should know about.
Bharti Airtel and Google Deal Done: Key Points
Point 1 – Airtel and Google announced a deal on January 28.
Point 2 – Airtel would get $700 million from Google for an equity stake of 1.28% and $300 million for forming multi-year commercial agreements.
Point 3 – On February 26, 2022, shareholders of Bharti Airtel approved the deal at an extraordinary general meeting (EGM).
Point 4 – Airtel is the second telecom operator in India to get money from Google. Jio was the first one.
Point 5 – Airtel CEO denies any conflict-of-interest present in the deal as Jio is also working with Google. The key difference is Airtel’s partnership is for making smartphones more affordable while Jio is manufacturing its own smartphones with Google.
Point 6 – The Competition Commission of India (CCI) approves the deal between Google and Airtel, which means the search-engine giant gets its ticket to own a stake in the second-largest private telco of India.
Point 7 – On July 14, 2022, Airtel informed the stock exchanges that the ‘Special Committee of Directors for Preferential Allotment’ had approved the deal.
Point 8 – Google to get a total of 71176,839 shares of Bharti Airtel at Rs 734 each (Rs 5 face value which is fully paid up, and Rs 729 premium).
Point 9 – Airtel says that Google will hold a 1.20% stake in the company.
Point 10 – Airtel and Google’s first commercial agreement will focus on making 4G smartphones more affordable for consumers.
This is all that you need to know about the Airtel and Google deal. What do you think about it?