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Tata Teleservices to merge consumer mobile business with Airtel

Livemint logoLivemint 12-10-2017 Livemint

New Delhi: Tata Teleservices will merge its consumer mobile businesses with Bharti Airtel Ltd, the companies said in a statement.

Under the agreement, Bharti Airtel will acquire Tata Teleservices’s consumer mobile business operations across India in 19 circles, boosting its spectrum foot print with the addition of 178.5 MHz spectrum in the 850, 1800 & 2100 MHz bands, said the statement filed with the BSE.

The merger will be executed on a debt-free cash-free basis, except for Bharti Airtel assuming a small portion of the unpaid spectrum liability of Tata’s towards the department of telecom, which is to be paid on a deferred basis, according to the news release.

Tata Teleservices to merge consumer mobile business with Airtel: Bharti Airtel will also have an indefeasible right to use for part of the existing fiber network of Tata. Photo: Bloomberg © LiveMint Bharti Airtel will also have an indefeasible right to use for part of the existing fiber network of Tata. Photo: Bloomberg

Bharti Airtel will also have an indefeasible right to use for part of the existing fiber network of Tata. Tata’s consumer mobile business operations and services will continue as normal until the completion of the transaction.

“This is a significant development towards further consolidation in the Indian mobile industry and reinforces our commitment to lead India’s digital revolution by offering world-class and affordable telecom services through a robust technology and solid spectrum portfolio,” said Sunil Mittal, chairman of Bharti Airtel.

Tata and Bharti Airtel will work together to further explore other mutual areas of cooperation, noted Bharti Airtel in the news release.

“We believe today’s agreement is the best and most optimal solution for the Tata Group and its stakeholders,” said N. Chandrasekaran, chairman of Tata Sons. “We have evaluated multiple options and are pleased to have this agreement with Bharti.”

Goldman Sachs (India) Securities Pvt. Ltd acted as financial advisor to Tata.

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