In a strategic move, Bharti Airtel Services, a wholly-owned subsidiary of Bharti Airtel, has finalized an agreement to acquire a substantial 97.1% stake in Beetel Teletech, another entity within the Bharti Group. The acquisition involves the purchase of 49.45 lakh shares at a cost of Rs 669 crore, marking a significant step in Bharti Airtel’s indigenization initiatives and aligning with the ‘Make In India’ policy. The transaction, conducted in cash, is part of a broader plan to enhance the distribution and service capabilities, including system integration, particularly in the enterprise business segment.
The filing noted, “This acquisition is a part of the group restructuring, with Bharti Airtel Services Limited becoming the majority stakeholder by acquiring 49,45,239 equity shares, equivalent to a 97.1% stake in Beetel Teletech Limited. Beetel Teletech is also a key player in a joint venture with two manufacturing facilities producing telecom and networking products eligible for the Production Linked Incentive (PLI) Scheme.”
Following the completion of this acquisition, Beetel will transition into a subsidiary of Bharti Airtel Services. The deal qualifies as a related party transaction under SEBI listing regulations. Bharti Group entities, namely Bharti Enterprises (Holding) Private Limited, Bharti (RM) Holdings Private Limited, Bharti (RBM) Holdings Private Limited, and Bharti (LM) Enterprises Private Limited, collectively hold the 97.1% stake in Beetel.
Beetel Teletech, established on March 30, 1999, leverages its in-house technical capabilities and global OEM relationships to offer a wide array of technical solutions and services. The company is involved in the distribution of various products, including IT peripherals, network and enterprise solutions, and fixed landlines and mobile accessories. Beetel is recognized for its distribution of renowned brands such as Avaya, HP/Poly, Samsung, Siemens, QSC, RADWIN, Ruckus, RAD, ADVA, and Actelis.
Additionally, Beetel holds a 49% stake in a Joint Venture with two manufacturing facilities specializing in landlines, telecom, and networking products, aligning with the ‘Production Linked Incentive (PLI) Scheme to Promote Telecom and Networking Products Manufacturing in India’ as notified by the Ministry of Communications. The acquisition underscores Bharti Airtel’s commitment to strengthening its position in the telecom and enterprise solutions landscape.
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