Google to invest up to US$1 billion in India's Bharti Airtel
BENGALURU: Alphabet Inc's Google will invest up to US$1 billion in Bharti Airtel in a move that could help bolster the Indian telecom operator's digital offerings, the companies said on Friday (Jan 28).
The investment includes a US$700 million equity investment
in Airtel at a price of 734 rupees (US$9.77) per share and up to US$300 million
towards implementing commercial agreements, including investments in scaling Airtel's
offerings, the companies said.
The share issue is subject to regulatory and shareholder
approval and comes months after Airtel raised up to 210 billion rupees through
a sale of shares to existing shareholders.
Airtel shares were up 0.54 per cent at 711 rupees after the
announcement.
Google announced plans less than two years ago to infuse
US$10 billion in India via its digitisation fund over five to seven years
through equity deals and tie-ups.
Conglomerate Reliance Industries Ltd's digital unit Jio
Platforms, which houses Airtel's telecom rival Jio, received an investment of
US$4.5 billion from Google in July 2020. In return, the US tech behemoth got a
seat on Jio's board.
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