Bharti Airtel has announced the withdrawal of its merger plans that were announced in April, 2021. It has a modified scheme under which it will merge itself with a wholly-owned subsidiary Telesonic Networks, which will result in consolidation of fibre assets in the company, and Nettle Infrastructure Investments. The company will continue to pursue its plan to eventually merge the DTH wing (Bharti Telemedia) into the listed entity.
“The board is of the view that the existing corporate structure of the company is therefore optimal for leveraging emerging opportunities and unlocking value while continuing to scale up Airtel’s digital businesses. Therefore, the scheme of arrangement for the new corporate structure announced on April 14, 2021, stands withdrawn,” the company said in a stock exchange filing. “With a strong balance sheet and 5G-ready network, Bharti Airtel is well positioned to invest aggressively in the emerging growth opportunities offered by India’s digital economy,” it added.
According to earlier plans, Airtel Digital was supposed to merge with the listed entity along with all its digital assets such as its music streaming app Wynk, its content platform Xstream and others. Moreover, they had planned to separate the telecomm business to a different unit called Airtel Ltd. while consolidating all its other businesses.