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Amazon to pick up stake in Bharti Airtel: Reuters
Posted on Friday, 05 June 2020 06:19
Amazon is in the early-stage talks to buy a stake worth at least USD 2.00 billion in India’s Bharti Airtel, three people familiar with the matter told Reuters.
The sources, who asked not to be named as the situation is still private, said the planned investment, if completed, would mean the online marketplace giant taking around 5.0 per cent of the target’s stock.
Discussions come as global players are betting on the digital arm of Reliance Industries, which owns Bharti’s telecommunications rival Jio, Bloomberg observed.
Talks between Amazon and Bharti are still in the early stages, the insiders observed, adding terms could therefore still change and there is no guarantee an agreement will be reached.
Shares in the potential target rose 5.7 per cent to INR 583.25 (USD 7.77) at 15:30 today, giving the business a market capitalisation of INR 3,300 billion.
Amazon has invested over USD 6.50 billion in India to date, TechCrunch reported.
When contacted by the technology news site, the ecommerce giant declined to comment while Bharti said the company routinely works with all digital and over the top players and have deep engagement with them to bring their products content and services for its wide customer base.
The target is a leading global telecommunications company with operations in 18 countries across Asia and Africa.
Headquartered in New Delhi, Bharti ranks among the top three mobile service providers globally in terms of subscribers, the company’s product offering include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed home broadband and long distance capabilities.
It has over 403.00 million customers across its operations at the end of June 2019.
During the year ended 31st December 2019, Bharti posted revenues of INR 807.80 billion, down 2.2 per cent from INR 826.39 billion in the previous 12 months.
Earnings before interest, taxes, depreciation and amortisation fell 13.6 per cent to INR 262.94 billion in 2019, compared to INR 304.48 billion in 2018.
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