Bharti Airtel has dropped its plans of complete corporate restructuring and will now resume operating according to the standing corporate structure as mentioned in a statement released by the company on Tuesday.
Airtel Corporate Restructuring: The seminal telecom sector reforms package announced by the Government of India has significantly boosted the outlook and investor confidence for the industry while simplifying the license framework. With a strong balance sheet and a 5G ready network, Bharti Airtel is well positioned to invest aggressively in the emerging growth opportunities offered by India’s digital economy.
Why Corporate Restructuring isn’t Necessary?
The statement released from the company added that the Board of Directors (“Board”) of the company is of the view that the existing corporate structure of the Company is, therefore, optimal for leveraging these emerging opportunities and unlocking value while continuing to scale up the company’s digital businesses. Therefore, the scheme of arrangement for the new corporate structure announced on April 14, 2021 stands withdrawn.
The statement in its conclusion explains that, under a modified scheme, the Company, as previously approved by the Board, will merge its wholly owned subsidiary Telesonic Networks Limited, resulting in consolidation of its fiber assets into Airtel. In addition, Nettle Infrastructure Investments Limited will also be merged with Airtel. As announced earlier, the Company will pursue its plan to eventually fold the DTH business (Bharti Telemedia) into Airtel to move towards the NDCP vision of converged services to customers.
The Company’s businesses continue to be categorised under four key verticals – India, Digital, International and Infrastructure.