Bharti Airtel Gets CCI Green Light To Increase Stake In Indus Towers To Over 50%

Indus Towers initiated the buyback of over 5.67 crore shares at Rs 465 each on August 14, representing approximately 2.107 per cent of the total equity shares in the company's paid-up capital

The Competition Commission of India (CCI) approved Bharti Airtel's proposal to increase its stake in Indus Towers on Tuesday, following the telecom infrastructure company's share buyback. Indus Towers is a passive telecom infrastructure provider responsible for deploying, owning, and managing passive telecom infrastructure for various mobile operators.

"The Commission approves an increase in the percentage shareholding of Bharti Airtel Ltd (Bharti Airtel) in Indus Towers Ltd (Indus Towers) to 50.005 per cent pursuant to buy back of shares by Indus Towers," CCI said in a release.

In August, Bharti Airtel announced its plan to acquire a stake of over 50 per cent in Indus Towers following the completion of the ongoing Rs 2,640-crore share buyback scheme by the telecom infrastructure firm. 

Indus Towers initiated the buyback of over 5.67 crore shares at Rs 465 each on August 14, representing approximately 2.107 per cent of the total equity shares in the company's paid-up capital. Currently, Bharti Airtel holds a 50 per cent stake in Indus Towers, according to exchange data.

In a separate announcement, the Competition Commission of India (CCI) approved Luxembourg-based CVC Capital Partners' proposal to acquire Aavas Financiers, a financial services company. Aavas Financiers is registered with the National Housing Bank as a non-deposit-taking housing finance company, specialising in home loans, MSME business loans, and loans against property.

"The proposed transaction relates to the acquisition of shares and control by the Aquilo House Pte Ltd (Acquirer) in Aavas Financiers (Target) pursuant to the share sale agreements executed amongst the Acquirer, the Target and certain existing promoters/ promoter group of the target," fair trade regulator said.

Aquilo House is an affiliate of CVC Capital Partners Plc, a private equity and investment advisory firm. The competition watchdog has also approved the mandatory open offer, which is in compliance with the Securities and Exchange Board of India (SEBI) regulations regarding substantial acquisitions of shares and takeovers.

In August, Aquilo House announced that it had entered into definitive agreements to acquire equity shares representing a 26.47 per cent stake in Aavas Financiers from Lake District Holdings (an affiliate of Kedaara Capital), Partners Group ESCL, and Partners Group Private Equity (Master Fund), LLC. This acquisition triggered an obligation for the purchaser to initiate an open offer in accordance with SEBI's Substantial Acquisition of Shares and Takeovers (SAST) norms.

Under SEBI regulations, CVC Partners are required to publicly announce an open offer since their shareholding exceeds the 25 per cent threshold. Deals beyond this limit necessitate regulatory approval to ensure fair competition and prevent unfair business practices in the marketplace.