Sai Jai
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NEW DELHI: Bharti Airtel is a step closer to getting approval for closing the Telenor India acquisition, after the telecom department did not raise objections to the deal in its submission to the National Company Law Tribunal (NCLT).
In an affidavit submitted to the NCLT, the Department of Telecommunications , however, noted that Airtel would have to submit two bank guarantees totalling about ₹1,700 crore to the government over spectrum payments.
It also laid out details of the money owed by both companies, but most of its demands for payment have been stayed by courts. After the NCLT’s clearance, the companies will require also a formal approval from the telecom department to close the deal. The affidavit was in response to an NCLT notice to the department, asking it to give “a complete picture” regarding the unutilised spectrum belonging to Telenor India.
ET has seen a copy of the affidavit. “It is respectfully submitted that the Department of Telecommunications (DoT) may have no objection to transfer/merger of licences subject to the fulfilment of the conditions laid down in the guidelines of the merger and acquisitions (issued in February 2014),” DoT said in its affidavit, dated January 18. As per the M&A guidelines, the merged entity will have to submit an undertaking that any demand raised before the merger will have to be paid.
Airtel-Telenor deal clears DoT test at NCLT - ET Telecom
In an affidavit submitted to the NCLT, the Department of Telecommunications , however, noted that Airtel would have to submit two bank guarantees totalling about ₹1,700 crore to the government over spectrum payments.
It also laid out details of the money owed by both companies, but most of its demands for payment have been stayed by courts. After the NCLT’s clearance, the companies will require also a formal approval from the telecom department to close the deal. The affidavit was in response to an NCLT notice to the department, asking it to give “a complete picture” regarding the unutilised spectrum belonging to Telenor India.
ET has seen a copy of the affidavit. “It is respectfully submitted that the Department of Telecommunications (DoT) may have no objection to transfer/merger of licences subject to the fulfilment of the conditions laid down in the guidelines of the merger and acquisitions (issued in February 2014),” DoT said in its affidavit, dated January 18. As per the M&A guidelines, the merged entity will have to submit an undertaking that any demand raised before the merger will have to be paid.
Airtel-Telenor deal clears DoT test at NCLT - ET Telecom
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