Telecom operator Bharti Airtel will acquire the business of Telenor India for an undisclosed sum in all seven circles where it holds spectrum.
Airtel on 23rd Feb 2017 said it had entered into a definitive agreement with Telenor South Asia Investments Pte Ltd to acquire Telenor (India) Communications Private Limited.
In a statement, Telenor said the transaction would not trigger any impairment.
As of fourth quarter 2016, the remaining value of tangible and intangible assets in Telenor India amounted to NOK 0.3 billion. '
The transaction is expected to close within 12 months.
Airtel is India’s largest wireless operator with over 269 million subscribers and a revenue market share of over 33 per cent.
As the new owner, Airtel will take over Telenor India’s spectrum, licences and operations, including its employees and customer base of 44 million.
As a part of the agreement, Airtel will acquire Telenor India’s running operations in Andhra Pradesh, Bihar, Maharashtra, Gujarat, UP (East), UP (West) and Assam.
It will also enable Airtel to further bolster its strong spectrum footprint in these seven circles, with the addition of 43.4 MHz spectrum in the 1,800 MHz band,” Airtel said.
Telenor India’s operations and services will continue as normal until the completion of the transaction.
The acquisition of additional spectrum through this transaction, which made an attractive business proposition, has further enhanced Airtel’s spectrum portfolio.
With effect from the first quarter of 2017, Telenor India will be treated as an asset held for sale and discontinued operations in Telenor Group’s financial reporting.
Telenor announced its entry into India in 2008. In 2016, Telenor India’s revenues were NOK 6.0 billion and the operating cash flow was NOK - 0.4 billion.
Telenor: Know More- CEO: Sigve Brekke (17 Aug 2015)
- Headquarters: Fornebu, Bærum, Norway
- Owner: Politics of Norway (54%)
