Airtel to allocate 9.7 lakh equity shares, 497 special shares to Tata Tele
![With this investment, Singtels total stake (along with its affiliates) in Bharti Telecom will increase to 48.90 per cent. Singtel currently holds 47.17 per cent stake in Bharti Telecom. This will lead to an increase of Singtel economic interest in Bharti Airtel by 0.9 percentage points to 39.5 per cent. (Photo: PTI) With this investment, Singtels total stake (along with its affiliates) in Bharti Telecom will increase to 48.90 per cent. Singtel currently holds 47.17 per cent stake in Bharti Telecom. This will lead to an increase of Singtel economic interest in Bharti Airtel by 0.9 percentage points to 39.5 per cent. (Photo: PTI)](https://s3.ap-southeast-1.amazonaws.com/images.asianage.com/images/aa-Cover-3hg3m9l61j8avq3i1lblper786-20180206054411.Medi.jpeg)
New Delhi: Bharti Airtel's committee of directors on Friday approved allocation of over 9.7 lakh equity shares and 497 redeemable preference shares to shareholders of Tata Teleservices as part of merger process.
"970,668 equity shares (in aggregate including fractional entitlements) fully paid up of face value of Rs 5 per share of the company to the eligible equity shareholders of TTML in the ratio of 1 equity share of the company for every 2,014 equity shares held in TTML by eligible equity shareholders of TTML," Airtel said in a bSE filing.
The allocation will include 79,529 Bharti Airtel Limited (BAL) equity shares of Bharti Airtel Fractional Share Entitlement Trust, it said.
Bharti Airtel on July 1 announced that the consumer mobile business of Tata Teleservices Ltd (TTSL) has now become its part.
However, the Department of Telecom (DoT) is yet to take this merger on record and is gearing up to challenge the deal in the Supreme Court.
TTML shareholders holding fully paid-up, redeemable preference shares will get 10 fully paid-up redeemable, non-participating, non-cumulative preference shares of a face value of Rs 100 of Airtel.
Under the composite scheme of arrangement among TTSL and Bharti Hexacom , a subsidiary of Bharti Airtel, and their respective shareholders and lenders, the Sunil Bharti Mittal led company has allocated 467 BAL redeemable preference share (RPS) to TTSL equity holders in proportion to their holding and cash in lieu thereof to the non-resident TTSL equity share.
The committee has approved allocation of 10 BAL RPS to all and not each shareholder holding fully paid up compulsorily convertible preference shares and 10 BAL RPS to all and not each shareholder holding fully paid up optionally convertible preference shares to TTSL shareholders.