airtel withdraws plan for new corporate structure

Airtel has withdrawn the plan it had earlier announced for a new corporate structure

New Delhi: Bharti Airtel on Tuesday said plans for a new corporate structure announced on April 14, 2021, have been “withdrawn” as the board is of the view that its existing structure will unlock value while harnessing emerging opportunities and growing digital businesses. to be optimal. ,

The “fundamental” telecom sector reform package announced by the government has significantly enhanced the outlook and investor confidence for the industry while simplifying the licensing framework, the company said in a statement.

With a strong balance sheet and 5G-ready network, Bharti Airtel said it is “well positioned” to invest aggressively in the emerging growth opportunities offered by India’s digital economy.

“The Board of Directors of Airtel is of the view that the existing corporate structure of the Company is, therefore, optimal to take advantage of these emerging opportunities and unlock value for continuing to grow Airtel’s digital businesses,” it said.

Accordingly, it said, the plans for arranging the new corporate structure announced on April 14, 2021, have been “withdrawn”.

Under a revised plan, the company, as previously approved by the board, will merge its wholly owned subsidiary Telesonic Networks with itself, resulting in the consolidation of fiber assets in Airtel.

In addition, Nettle Infrastructure Investments will also be merged with Airtel.

“As announced earlier, the company will eventually move forward with its plan to convert the DTH business (Bharti Telemedia) to Airtel to move towards an NDCP vision of convergence services for customers.”

NDCP refers to the National Digital Communications Policy.

The company’s businesses continue to be classified under four key verticals – India, Digital, International and Infrastructure.

Bharti Airtel last year announced a new corporate structure to focus the company’s focus on driving increasingly emerging digital opportunities, while enabling it to unlock value.

The new structure includes the amalgamation of Airtel Digital Limited into the listed entity Bharti Airtel.

It is aimed at all digital products and services spread across Wynk Music, Airtel X Stream, Airtel Thanks, Mitra Payments platform used by one million retailers, Airtel Ads, Airtel IQ, Airtel Secure, Airtel Cloud and all future digital products and services. To keep the properties. The company said on April 14, 2021.

At that time the company had stated that the telecom business would be placed in a newly created entity – Airtel Limited, which is a wholly owned subsidiary of Bharti Airtel Limited.

Bharti Telemedia, the arm operating 100 per cent owned DTH services, will sit with Airtel Ltd for now, it was said at the time.

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