Tata Teleservices, in October 2017, had signed a proposal with Airtel to transfer its consumer mobility business.
The National Company Law Tribunal (NCLT) has approved the takeover of Tata Teleservices’ (TTSL) mobility business by Airtel.
“The National Company Law Tribunal, New Delhi, Principal Bench, vide its order dated January 17, 2019 (Order) has sanctioned the Composite Scheme of Arrangement between Tata Teleservices Ltd, Bharti Airtel Ltd and Bharti Hexacom Ltd and their respective shareholders and creditors under Sections 230 to 232 of the Companies Act, 2013,” Airtel said in the BSE filing.
The merger now awaits the approval of Department of Telecommunications (DoT). If approved, it will help Airtel to strengthen its 4G network and compete with Reliance Jio and Vodafone-Idea.
A report by Businessline said the merger will halp Airtel avail additional spectrum pool of 178.5 MHz in the 1800, 2100 and 850 MHz bands — all widely used for 4G.
A certified copy of the Order will be filed with the exchange separately, the company said.
Tata Teleservices, in October 2017, had signed a proposal with Airtel to transfer its consumer mobility business. Under the transfer pact, Airtel will acquire Tata Teleservices’ wireless business – with around 20 million customers and 178.5 units of airwaves – across 19 circles on a cash-free, debt free basis. Nearly 40 per cent of the Tata airwaves that Airtel will receive are 4G-LTE ready.
Source: Businessline, media reports