The merger will be on a debt-free, cash-free basis and all past liabilities and dues to be settled by Tata, the companies said in a statement.
Tata Sons Chairman N Chandrasekaran had recently conceded that the groups mobile business Tata Teleservices is in a "really bad shape" and that a "tough call" will have to be taken on the business in this financial year. The combined enterprise business segment of Tata Communications and BhartiAirtel are at par when it comes to revenue, but the quality of customers and intra-city cable network of Tata Communications is far wider.
"The merger is being done on a debt-free cash-free basis, except for Bharti Airtel assuming a small portion of the unpaid spectrum liability of Tata's towards the Department of Telecom, which is to be paid on deferred basis", the statements said. But the biggest benefit that Airtel would derive is access to Tata's 178.5 MHz spectrum bands spread across 19 circles.
Post the completion of this transaction, the employees of Tata will be separated on the basis of two businesses - CMB and EFL (Enterprise and Fixed Line and Broadband) - and will be moved to either of these businesses later on.
"Tata and Bharti Airtel will work together to further explore other mutual areas of cooperation, that will be value accretive for both the Groups". Last month Tata Steel agreed to merge its struggling European business with Germany's Thyssenkrupp. With synergies between Tata Communications and Airtel, the two companies could create capacity for almost twice the number of customers that they are now serving, officials add.
The sale of Tata Teleservices is part of Chandrasekaran's larger plan to shed the $103-billion group of stressed assets that are impacting overall profitability. It later exited this business to focus on Tata Teleservices, which was on the CDMA technology platform. However, it finally found it best to find a nest for the business rather than closing it down as the latter has huge ramifications on business ecosystem. Meanwhile, there were talks with other groups as well including Reliance Jio for a possible merger deal. Besides, partner NTT DoCoMo too made a decision to pull the plug from Tata Teleservices.
Arvind Singhal, chairman of retail consultancy Technopak Advisors, said: "Tata Teleservices in any case has hardly been doing much in the past few years and has been a loss-making proposition. We would look to acquire more to scale up the scope and size of the operations", said Saurabh Agrawal, Group CFO, Tata.
The telecom industry believes that Tata Group will shed some employees during the transition of business.
An episode of Carpool Karaoke featuring Chester Bennington has been released in memory of the late singer. As Nicki Swift previously reported , Bennington passed away on July 20, 2017 of an apparent suicide.
Jaihind used the auto for campaigning for the Lok Sabha polls in Rohtak before Vandana took possession of the vehicle . After using it during his famous 49-day-stint, Kejriwal gave it to Naveen Jaihind, the party's Haryana incharge.
But after dipping below US$3000 in mid-September, bitcoin has leapt in value by more than 75 per cent in four weeks. This morning Bitcoin shot past $5,000, and is now hovering around $5,300 - up almost 10% from yesterday.
It improved, as 61 investors sold SCHW shares while 245 reduced holdings. 146 funds opened positions while 731 raised stakes. Following the completion of the purchase, the director now owns 1,850 shares of the company's stock, valued at $49,894.50.
Musk's hyperloop involvement is for now limited to potentially building the tunnels with his latest startup - The Boring Company. Virgin Galactic founder Richard Branson predicts he will travel in space before he ever becomes a passenger on a hyperloop.
I'll take some time to let the dust settle and then I'm sure we'll have a sit down and have a chat and we'll take it from there". Welsh supporters would have woken up this morning wondering how they are not in a World Cup playoff.
In antivirus "Kaspersky Lab" was spelled out an in depth scan documents on the computers to search for classified information. After an investigation, the NSA determined that the Russian government had access to these tools.
Nigeria's Super Eagles qualify for 2018 FIFA World Cup
Remarkably, Nigeria is making her sixth FIFA World Cup appearance since its debut in United States of America '94. Having secured a ticket to the 2018 World Cup Nigeria play Algeria on the 6th of November in a dead rubber game.