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Bharti Airtel Limited Enters into Agreement for Transfer of Stake in Firefly Networks Limited
Team Finance Saathi
06/Jan/2025
What's covered under the Article:
- Bharti Airtel enters into a Share Purchase Agreement with iBus Network for stake transfer in Firefly Networks Limited.
- The transfer will cause Firefly Networks to cease being a joint venture of Bharti Airtel.
- The expected completion of the sale is within 30 business days, with a consideration of Rs. 45 million.
Bharti Airtel Limited, a leading global telecommunications company, has disclosed an important update regarding a significant share transfer. On January 6, 2025, the company entered into a Share Purchase Agreement with iBus Network and Infrastructure Private Limited, agreeing to transfer its entire stake of 50% in Firefly Networks Limited. This move will result in Firefly ceasing to be a joint venture of Bharti Airtel.
This transaction is a pivotal moment for the company, marking a major strategic shift in its portfolio. The transfer is subject to the completion of certain closing conditions, and Bharti Airtel expects the sale to be completed within approximately 30 business days from the execution of the agreement.
The consideration for the sale of 50% stake in Firefly Networks Limited is valued at Rs. 45 million, a significant amount which reflects the valuation of the venture at the time of transfer. Firefly Networks Limited, during the financial year 2023-24, contributed a minimal share of turnover (0.0065%) and net worth (0.0007%) to Bharti Airtel’s consolidated financial results, as per the disclosed figures.
The buyer, iBus Network and Infrastructure Private Limited, is not related to Bharti Airtel's promoter group or its group companies, ensuring that this transaction is conducted at arm’s length and does not fall under related party transactions. Therefore, the transaction has been conducted with full compliance with SEBI Listing Regulations.
Regarding regulatory compliance, the company confirmed that the sale of the stake does not qualify as a slump sale and does not require any scheme of arrangement under Regulation 37A of LODR Regulations. As such, the transaction is outside of these provisions.
Bharti Airtel has made the required disclosures to both the National Stock Exchange of India Limited (NSE) and BSE Limited, in line with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
This move marks a strategic restructuring for Bharti Airtel, consolidating its operations and aligning its focus on its core business. As part of its divestment strategy, the company has carefully considered the commercial impact and the future prospects of its ventures, ensuring that it remains poised for growth in its primary telecom sector.
Bharti Airtel has expressed its commitment to transparency in all its dealings and continues to comply with SEBI regulations, ensuring that all material corporate actions are disclosed promptly to the public and stakeholders.