The National Company Law Tribunal (NCLT) on 23rd March 2021 sanctioned the composite scheme of arrangement between Bharti Airtel Limited, Bharti Airtel Service’s Limited, Hughes Communications India Private Limited and HCIL Comtel Private Limited and their respective shareholders and creditors. The NCLT approval is subject to sectoral approvals.
“Pursuant to Regulation 30(7) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform you that Hon’ble National Company Law Tribunal, New Delhi, Principal Bench (‘NCLT’) has, vide its Order dated March 23, 2021, received on March 24, 2021, subject to the applicable sectoral approvals, sanctioned the Composite Scheme of arrangement between Bharti Airtel Limited, Bharti Airtel Services Limited, Hughes Communications India Private Limited and HCIL Comtel Private Limited and their respective shareholders and creditors under Sections 230 to 232 of the Companies Act, 2013 (‘Scheme’),” said Bharti Airtel in a regulatory filing.
In May 2019, Bharti Airtel and Hughes Communications India had announced the combining of their VSAT satellite operations in the country with Hughes retaining a majority stake in the merger entity. Bharti Airtel’s shareholders had last year in August 2020 approved the proposed scheme of arrangement between Bharti Airtel, Bharti Airtel Services, HCIL Comtel and Hughes Communications India Limited.
The NCLT approval for the composite scheme of arrangement was the last peg in the hole after the shareholders approval. NCLT’s approval in the matter is the final approval for the VSAT merger.