Bharti Cellular, a subsidiary of Bharti Tele-Ventures and holding company of the group's cellular businesses intends to merge all its subsidiaries with the company.
Sunil Bharti Mittal, chairman and managing director, Bharti Tele-Ventures said, eventually the company would integrate its various cellular subsidiaries into Bharti Cellular. However, he clarified the board is yet to approve the proposition.
"First we will prepare an internal document which will then be placed to the board" said Mittal.
Bharti Cellular has five companies under its fold: Bharti Mobitel (cellular service provider in Kolkata), Bharti Mobinet (holder of the Chennai cellular licence), SC Cellular(investment company), Bharti Mobile (cellular service provider in Karnataka, Andhra Pradesh & Punjab circles) and Welldone Impex (holds real estate).
At present, only two of the Bharti Cellular subsidiaries, Bharti Mobile and Bharti Mobinet, are not wholly owned subsidiaries. While Bharti Mobile is a 74 per cent subsidiary of Bharti Cellular, the ownership in Bharti Mobinet is 94.8 per cent.
The acquisition of 40.5 per cent of the outstanding equity of Bharti Mobinet from Crompton Greaves and the agreement to acquire the remaining outstanding equity of Bharti Mobinet and ownership of certain shares of Bharti Mobile and present 74 per cent effective equity interest in Bharti Mobile is under litigation.
Mittal said, "The process of consolidation in Bharti Cellular can start despite the two subsidiaries not being 100 per cent."
Bharti Tele-Ventures is expected to come out with its initial public offering (IPO) early next year. Post-IPO, the equity of Indian shareholding in the company will stand reduced to 48.3 per cent from 53.7 per cent. Mittal however explained, that the company is driven by its management and not the owners. "The shareholding may reduce further after the second round of funding but will not make any difference to the operations of the company" said Mittal.
He also pointed out, that post issue foreign shareholding will stand reduced at 41.7 per cent from 46.3 per cent. Mittal however ruled out possibilities of Sing Tel raising its stake in Bharti Telecom, promoters of Bharti Tele-Ventures.
Meanwhile, in the group's broadband business, Bharti Telespatial, Bharti BT, Bharti BT Internet and Bharti Broadband Networks are in the process of being amalgamated to form Bharti Broadband Networks.
