The National Company Law Tribunal (NCLT) has given its nod to the merger of Bharti Digital Networks (formerly called Tikona Digital Networks) with Bharti AirtelNSE -0.94 %.
“In view of absence of any other objections , having been placed on record before this Tribunal and since all the requisite statuary compliances having been fulfilled, this Tribunal sanctions the scheme of amalgamation…with the Company Petition as well as the prayer made therein “, said the order .
In March 2017, Bharti Airtel had announced plans to buy Tikona Digital’s 4G airwaves for Rs 1,600 crore, in its bid to boost its high-speed broadband spectrum holdings for taking on Reliance Jio Infocomm (Jio) and the Vodafone-Idea Cellular combined.
Amidst severe tariff wars tolcos are expanding their 4G bases to attract and retain the data guzzling customers . Airtel , which had bagged 4G airwaves in only four of the 22 circles , started buying companies who had 4G spectrum. Tikona was its fifth such acquistion since 2015.
ET had earlier reporter that the Tikona deal, which includes taking on debt of Rs 500-600 crore, will see Airtel net 100 MHz of 4G spectrum in the 2300 MHz (4G) band equally split across the five circles, taking its total 4G holding to close to 880 MHz (including Telenor India), compared with 1,169 MHz for Jio and 1,089 MHz for the Vodafone-Idea combine. It will also get 350 cell sites in those five circles but won’t take on any employees of Tikona.