 "Videocon Industries, Bharti Airtel gain on spectrum deal")
Shares of Bharti Airtel and Videocon Industries surged between 3.5%-17% on the bourses after Bharti Airtel announced that it has entered into a definitive agreement with Videocon Telecommunications, a subsidiary of Videocon Industries, to acquire rights to use spectrum in six regions for Rs 4,428 crore.
“Bharti Airtel has on March 16, 2016 entered into a definitive agreement with Videocon Telecommunications (VTL) to acquire, at an aggregate consideration of Rs 4,428 crore, rights to use 2 x 5 MHz spectrum in the 1800 MHz Band allotted to VTL by the Government of India, Ministry of Communication & IT, Department of Telecommunication (DoT) on April 05, 2013 for six circles, namely, Bihar; Haryana; Madhya Pradesh; UP (East); UP (West) and Gujarat (Transaction), in terms of the Guidelines for Trading of Access Spectrum by Access Service Providers vide letter dated October 12, 2015 issued by the WPC Wing of the DoT (Spectrum Trading Guidelines),” Bharti Airtel said in a statement.
The aforesaid Spectrum is valid upto December 18, 2032, it added.
The closing of the transaction is subject to satisfaction of the standard conditions (including conditions stated in the Spectrum Trading Guidelines), as are normal to such transactions.
Post announcements, Videocon Industries has surged 17% to Rs 128, while Bharti Airtel moved higher by 3.5% to Rs 352 on the BSE in intra-day trade.
At 11:32 AM, Videocon Industries up 12% to Rs 123 on back of ten-fold jump in trading volumes. Bharti Airtel was up nearly 3% at Rs 349 on the BSE. The S&P BSE Sensex up 0.68% at 24,850 points.