Airtel withdraws new corporate structure program

Airtel has withdrawn the program it previously announced for a new corporate structure

New Delhi:

Bharti Airtel said on Tuesday that the proposed new corporate structure it announced on April 14, 2021 had been “withdrawn” as the board believes its existing structure is optimal for exploiting emerging opportunities. and unlocking value while growing digital businesses. .

The government’s “foundational” telecommunications sector reform package has significantly boosted investors’ outlook and confidence in the industry while simplifying the licensing framework, the company said in a statement.

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

“Airtel’s Board of Directors is of the view that the company’s existing corporate structure is therefore optimal to capitalize on these emerging opportunities and unlock value while continuing to grow Airtel’s digital business. “, did he declare.

As a result, he added, the scheme of arrangement for the new corporate structure announced on April 14, 2021 “is withdrawn”.

Under an amended scheme, 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 into Airtel.

Additionally, Nettle Infrastructure Investments will also be merged with Airtel.

“As previously announced, the company will continue with its plan to eventually merge the DTH (Bharti Telemedia) business into Airtel to evolve towards the NDCP vision of converged customer services,” he said.

NDCP refers to the National Digital Communication Policy.

The company’s business continues to be categorized into four key verticals – India, Digital, International and Infrastructure, he added.

Last year, Bharti Airtel announced a new corporate structure to strengthen the company’s focus on driving rapidly changing digital opportunities while enabling it to unlock value.

The new structure involved consolidating Airtel Digital Limited into the publicly listed entity Bharti Airtel.

It was intended to host all digital assets covering Wynk Music, Airtel X stream, Airtel Thanks, Mitra Payments platform used by a million retailers, Airtel Ads, Airtel IQ, Airtel Secure, Airtel Cloud and all future products and digital services, the company had said on April 14, 2021.

The company then said that the telecommunications business would be housed in a newly created entity – Airtel Limited, a wholly owned subsidiary of Bharti Airtel Limited.

Bharti Telemedia, the wholly owned arm that operates DTH services, will sit alongside Airtel Limited for now, it said at the time.