NEW DELHI, MARCH 31: Bharti Enterprises, one of the promoter group companies of Bharti Telecom Limited (BTL), has entered into an agreement to acquire 26,69,400 shares representing 15.8 per cent of the paid up capital of Bharti Telecom. This is subject to the approval of the SEBI.Bharti Enterprises has also decided to make a public offer in accordance with SEBI's takeover code to acquire the balance 24.53 per cent public stake representing 41,45796 shares at a price of Rs 95 per share.
The total paid up capital of Bharti Telecom is Rs 16.90 crore of which the promotors hold 59.67 per cent. They have in addition arranged to acquire additional equity of 15.8 per cent of the company and are making the offer for the balance 24.5 per cent of the equity of the company. The price offered in the open offer at Rs 95 per share reflects an attractive premium over the market price which has touched a low of Rs 71 per share as on March 19, 1998, the company release said. The offer is expected to open in about fourweeks time.
The offer is being made to enable the shareholders including those holding odd lot shares to exit at an attractive premium, it said. The offer price takes into account the guidelines under the SEBI takeover code and is in excess of the average price stipulated under the SEBI norms.
A full acceptance of the offer may result in the company being delisted from the stock exchanges and in such an event the status of the company will change from a public limited to that of an unlisted company. A spokesman of the acquirers stated that there is a poor valuation of the company's shares in the market and while the share is trading at a higher price earnings ratio than that of the rest of the telecom industry is still undervaluing the real worth of the company. The offer by Bharti Enterprises is significant as it comes a day after reports that British Telecom is considering an open offer to the shareholders of Bharti Telecom. There were reports that British Telecom is considering an open offer to theshareholders of Bharti Telecom to pick up a substantial stake in the company.Bharti Telecom, which is 75-per cent owned by Sunil Mittal and associates, is the main promoter and stakeholder in several telecom ventures of the Bharti group. The company holds 80 per cent in Bharti Televentures, the key holding company in which Stet of Italy holds 20 per cent. Bharti Televentures, in turn, holds 51 per cent in Bharti Telenet and Bharti Cellular. Bharti Telenet is the licence-holder for basic services in Madhya Pradesh and cellular services in Himachal Pradesh; Bharti Cellular, in which British Telecom (BT) already holds 22.5 per cent, is the cellular services provider in Delhi.
Apart from the stake in Bharti Cellular, BT also has a 50:50 joint venture with Bharti Telecom, Bharti BT, for providing VSAT services. It also has a 50:50 joint venture with Mahindra & Mahindra -- Mahindra British Telecom.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
