India''s largest telecom services provider, Bharti Airtel , on Thursday Feb 23,2017 officially announced that it will acquire Telenor India
Although both the companies did not disclose the deal size, internal sources from the companies said it ranges between Rs. 6,500 crore and Rs. 7,000 crore.
According to Telenor, the transaction will not trigger any impairment. As of fourth quarter 2016, the remaining value of tangible and intangible assets in Telenor India amounted to 0.3 billion Norwegian Krone.
The transaction is subject to requisite regulatory approvals, including approvals from the Department of Telecommunications (DoT) and the Competition Commission of India.
As part of the agreement, Airtel will acquire Telenor India’s running operations in seven circles - Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam. These circles represent a high population concentration and therefore offer a high potential for growth, the company said.
"On completion, the proposed acquisition will undergo seamless integration, both on the customer as well as the network side, and further strengthen our market position in several key circles. Customers of Telenor India will now be able to enjoy India’s widest and fastest voice and data network, and a range of Airtel’s world-class products and services," Gopal Vittal, Managing Director and CEO (India and South Asia), Bharti Airtel, said.
The proposed acquisition will include transfer of all of Telenor India’s assets and customers, further augmenting Airtel’s overall customer base and network.
"The proposed transaction will also create substantial long-term value for our shareholders given the significant synergies," Vittal added.
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