Airtel board okays merger of subsidiary with itself

Business

oi-Staff

By Super

Published: Thursday, October 24, 2013, 15:44 [IST]

New Delhi, Oct 24:Telecom major Bharti Airtel today said that its board approved the merger of wholly owned subsidiary Airtel Broadband Services with itself. The amalgamation will be subject to approvals, including clearances from high courts, if any, the company said in a filing to the BSE.

"...the Board of Directors of the company has approved the scheme of amalgamation of Airtel Broadband Services Pvt Ltd (formerly known as Wireless Business Services Pvt Ltd), a wholly owned subsidiary, with the company," it said.

Bharti Airtel has recently acquired a 100 per cent stake in Wireless Business Services (WBSPL), a company founded by US chipmaker Qualcomm. Subsequent to the acquisition, the company was renamed Airtel Broadband Services.

Airtel had bought a 49 per cent stake in WBSPL in May 2012 for $165 million and had increased its stake in WBSPL to 51 per cent in July.Wireless Business Services has spectrum that can be used for high-speed 4G services in New Delhi, Mumbai, Haryana and Kerala. Airtel has similar spectrum in Punjab, Maharashtra, Kolkata and Karnataka.

Airtel has already launched 4G services in Bangalore, Pune, Kolkata, Chandigarh, Mohali and Panchkula. Airtel shares were trading at Rs 352.35, up 1.25 per cent, in the afternoon session on the BSE.

PTI