Bharti rises nearly 3% on acquisition reports
Telecom major Bharti Airtel's shares rose nearly three percent or up 2.83 percent at Rs 325.75 on the Bombay Stock Exchange on Wednesday
By PTI |
MUMBAI: Telecom major Bharti Airtel's shares rose nearly three percent or up 2.83 percent at Rs 325.75 on the Bombay Stock Exchange on Wednesday amid reports that it would buy majority stake in Bangladesh's fourth largest mobile operator Warid from its Abu Dhabi-based owners.
On the other hand, the shares rose over three percent or 3.25 percent from its previous close on the National Stock Exchange. The Bharti Airtel counter settled the day at Rs 327.15 on the NSE. During the day, the scrip swung between a high of Rs 327.50 and a low of Rs 316.60.
Over 79.26 lakh shares changed hands on the two bourses today when the market witnessed wild fluctuations.
Reports emanating from Dhaka said the Dhabi Group, which fully owns Warid, has sought approval from the Bangladesh Telecommunications Regulatory Commission for the sale.
"The Dhabi Group informed us on Sunday that it would sell 70 percent of Warid Telecom shares to Bharti Airtel. We have sought more papers and the copy of the MoU between the two companies," commission Chairman Zia Ahmed told.
"The deal would come as a pleasant surprise amid ongoing tariff war among the domestic telecom players," CNI Research CMD Kishor P Ostwal said.
"Being a developing market Bangladesh will help boost the topline and bottomline of Airtel, in coming period. The stock may see upward movement for a while now," Ostwal added.
Meanwhile in New Delhi, Bharti Enterprises deputy group CEO and managing director Akhil Gupta told reporters that the company is "interested in Bangladesh because we have an interest in countries in the South Asian Association for Regional Cooperation region".
In Sri Lanka, a SAARC country, the company is already offering mobile services. Gupta, however, declined to comment on whether Bharti is looking at buying 70 percent stake in Warid Telecom's Bangladeshi unit from its Abu Dhabi-based owners.
Bharti Airtel has been looking at overseas expansion to boost growth. In the past, Airtel has failed twice in sealing a deal with South Africa-based MTN Group.
The Bharti Airtel is the biggest telecom operator in the country with over 110 million subscribers with a market share of over 25 percent.
On the other hand, the shares rose over three percent or 3.25 percent from its previous close on the National Stock Exchange. The Bharti Airtel counter settled the day at Rs 327.15 on the NSE. During the day, the scrip swung between a high of Rs 327.50 and a low of Rs 316.60.
Over 79.26 lakh shares changed hands on the two bourses today when the market witnessed wild fluctuations.
Reports emanating from Dhaka said the Dhabi Group, which fully owns Warid, has sought approval from the Bangladesh Telecommunications Regulatory Commission for the sale.
"The Dhabi Group informed us on Sunday that it would sell 70 percent of Warid Telecom shares to Bharti Airtel. We have sought more papers and the copy of the MoU between the two companies," commission Chairman Zia Ahmed told.
"The deal would come as a pleasant surprise amid ongoing tariff war among the domestic telecom players," CNI Research CMD Kishor P Ostwal said.
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"Being a developing market Bangladesh will help boost the topline and bottomline of Airtel, in coming period. The stock may see upward movement for a while now," Ostwal added.
Meanwhile in New Delhi, Bharti Enterprises deputy group CEO and managing director Akhil Gupta told reporters that the company is "interested in Bangladesh because we have an interest in countries in the South Asian Association for Regional Cooperation region".
In Sri Lanka, a SAARC country, the company is already offering mobile services. Gupta, however, declined to comment on whether Bharti is looking at buying 70 percent stake in Warid Telecom's Bangladeshi unit from its Abu Dhabi-based owners.
Bharti Airtel has been looking at overseas expansion to boost growth. In the past, Airtel has failed twice in sealing a deal with South Africa-based MTN Group.
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The Bharti Airtel is the biggest telecom operator in the country with over 110 million subscribers with a market share of over 25 percent.
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