Bharti Airtel and Bharti Aquanet, now a single entity. - by dreamdamodar
Bharti Airtel gas announced the scheme of amalgamation of Bharti Aquanet into Bharti Airtel. Bharti Aquanet the transferor company has set up landing station at Chennai for handling data and voice transmission in and out of India in association with domestic long distance operators and submarine cable companies.
Initially Bharti Aquanet was 51% subsidiary and the balance 49% capital of transferor company was held by Singtel of Singapore. Thereafter, the transferee company acquired the balance 49% shareholding of transferor company from Singtel and as a result the transferor company became 100% subsidiary of transferee company. Hence with a view to maintain a simple corporate structure and eliminate duplicate corporate procedures Bharti Airtel decided to merge and amalgamate all the undertakings of Bharti Aquanet the transferor company into Bharti Airtel.
The vesting of all undertakings of Bharti Aquanet in Bharti Airtel will enable Bharti Airtel the tansferee company to provide single window integrated telecom solutions, into new service areas as well expand it's subscribers base.
The amalgamation of all undertakings of Bharti Aquanet into Bharti Airtel shall facilitate consolidation of all the undertakings in order to enable effective management and unified control of operations.
The amalgamation would create economies in administrative and managerial costs by consolidating operations and will substantially reduce duplication of administrative responsibility and multiplicity of records and legal and regulatory compliances.