Bharti Airtel informed the bourses that the company has entered into a definitive agreement with Videocon Telecommunication (VTL) to acquire its 1,800 MHz spectrum for Rs 4,428 cr in six circles. The move comes after Idea Cellular called off its Rs 3,310-crore spectrum deal with Videocon.
Bharti Airtel after the deal will acquire Videocon’s spectrum in Bihar, Haryana, Madhya Pradesh, UP (East), UP (West) and Gujarat.
Videocon had acquired spectrum in 1800MHz band, known as 2G spectrum, in these two service areas for a total of Rs 1,329 crore in November 2012 and made upfront payment of Rs 438.57 crore to the government. The aforesaid spectrum is valid upto Dec 18, 2032.
In a joint statement released on Wednesday, Idea Cellular and Videocon Telecommunications said they have agreed to terminate the agreement regarding spectrum sale in Gujarat and UP (West) with immediate effect.
Shares of Bharti Airtel and Videocon Industries were trading 2.81 per cent and 8.32 per cent at Rs 349.20 and Rs 118.50, respectively, at 12.05 pm.