Google to Get 1.2% of Bharti Airtel – Explained in Key Points

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.

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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.