Mr. Siddharth Zarabi’s, Spokesperson, MOSTSebi asked a clarifications from Bharti Airtel on complaints that the Bharti group company, Indian Continent Investment, has hiked its stake in Bharti by 6%. Sebi said that a public announcement was necessary in order to hike its stake in Bharti over 6% and the market regulator said that the announcement should be followed by open offer for non-promoter group investors. The Indian Continent Investment had bought 4.99% in FY08 and another 1.28% in FY09.
Commenting on above complaint Mr. Siddharth Zarabi said,
The 6% equity that has been mentioned is actually to do with the stake that Bharti-Airtel had re-acquired from Vodafone. In October 2005, there had been a 10% acquisition by Vodafone in Bharti-Airtel, in February 2007, Vodafone decided to exit and BTVL acquired a 5.65% stake from Warburg_Pincus, Vodafone continues to have indirect 4.4% stake in the company.
Sebi received a complaint on the basis of which it forwarded the entire complaint and its questions to Bharti. Bharti has confirmed that Sebi has sought details on the actual position. The allegation here is that the stake was acquired in contravention to take over regulations which specify that the 6% acquisition could not have been made without making a public announcement followed by an open offer for acquisition for a minimum of 20% shares of Bharti-Airtel.
"Both these transactions have been undertaken during two different financial years, and are well within the creeping acquisition limit of 5% in each financial year, as permitted under the takeover regulations. Therefore, there is no question of breach of any takeover regulation. We have also filed the requisite declarations to the stock exchanges on all these transactions in time. Sebi has sought details on the factual position, which we will provide shortly."
Commenting on above complaint Mr. Siddharth Zarabi said,
The 6% equity that has been mentioned is actually to do with the stake that Bharti-Airtel had re-acquired from Vodafone. In October 2005, there had been a 10% acquisition by Vodafone in Bharti-Airtel, in February 2007, Vodafone decided to exit and BTVL acquired a 5.65% stake from Warburg_Pincus, Vodafone continues to have indirect 4.4% stake in the company.
Sebi received a complaint on the basis of which it forwarded the entire complaint and its questions to Bharti. Bharti has confirmed that Sebi has sought details on the actual position. The allegation here is that the stake was acquired in contravention to take over regulations which specify that the 6% acquisition could not have been made without making a public announcement followed by an open offer for acquisition for a minimum of 20% shares of Bharti-Airtel.
"Both these transactions have been undertaken during two different financial years, and are well within the creeping acquisition limit of 5% in each financial year, as permitted under the takeover regulations. Therefore, there is no question of breach of any takeover regulation. We have also filed the requisite declarations to the stock exchanges on all these transactions in time. Sebi has sought details on the factual position, which we will provide shortly."
source: MC
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