Bharti Airtel is seeking permission from its shareholders to transfer its data center and managed services (DCMS) business to a subsidiary company. The company’s board had given its permission for the transfer in July.
Anil Ambani group company Reliance Communications’ stock price jumped by 10.9% after it announced a tie-up with the Mukesh Ambani group telecom company Reliance Jio Infocomm. Reliance Communications will open up its optic fibre network to Reliance Jio which has a license for nationwide 4G services. A recent government decision means that it can also provide voice services by paying a one-time fee. Reliance Industries owns a majority stake in Reliance Jio.
Are auctions the only method for allocating natural resources was a question that was hanging fire since the Supreme Court’s verdict on the 2G scam was issued. The government, through a presidential reference, requested the Supreme Court to give its opinion on this issue, and a few other issues related to the 2G judgement. The SC’s opinion was critical, as it would set to rest any doubts about interpreting the judgement.
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R Systems International, a software company with revenues of Rs 320 crore, acquired Computaris International, a UK-based telecom software services company. It will pay £9 million or about Rs 70 crore to buy the company, with about half the sum being paid upfront and the remaining being paid over a period of two years, tied in to performance. The company’s share price was up by about 6% at the time of posting.
Tulip Telecom, a telecom company in the enterprise side of the business, is acquiring a data centre in Bengaluru for Rs 230 crore. The company will acquire a 100% stake in SADA IT Parks Pvt Ltd, which is setting up a 9 lakh square feet data centre. Tulip’s existing four data centres cover an area of 1 lakh sq.ft, which will go up to 10 lakh sq. ft., after the acquisition.
International Data Corporation (IDC) and Cyber Media India have ended their partnership in India. Cyber Media was carrying out research for IDC’s India practice for the important sectors of information and communications technology (ICT). Now, IDC is setting up a new research unit in Bangalore, to take care of India centric research.
Telecom services operator, Bharti Airtel has tied up financing of $8.3bn for its $10.7bn or about Rs 49,000 crore bid to acquire Zain’s African operations. After the failure of its proposed acquisition of MTN, which attracted a lot of media coverage, Airtel has been keeping a low profile over the Zain Africa acquisition, with deal news coming out only at specific times.
Norwegian telecom company Telenor Asia Pte Ltd. pumped in Rs 1,493 crore into its Indian telecom joint venture with Unitech, Unitech Wireless. The money is through the fresh equity into a bunch of subsidiaries that operate in the various circles. With this infusion, Telenor owns a 60.1% stake in the company, against 49% earlier, making it the majority shareholder. Telenor’s total investment in the telecom business is Rs 4,113 crore so far, and will increase to Rs 5,606 crore after this investment.
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Bharti Airtel and MTN were unable to convince the South African government to accept their cross-border merger proposal. The government did not object to the merger per se but to the structure, which was outside the current regulatory environment. The two companies had proposed a structure, which ostensibly involved MTN taking up a stake in Bharti by subscribing to ADRs/GDRs. Bharti would in turn take up a stake in MTN, which was a direct transaction.