Bharti Airtel has announced a partnership with Google. In this partnership, Google Company will invest $1 billion in Airtel from its Google for India Digitization Fund. Google company will acquire a 1.28 percent stake in Airtel by investing 700 million. While an investment of $ 300 million has been announced under the multi-year deal.
Sundar Pichai, CEO of Google and Alphabet, said “Our commercial and equity investment in Airtel is a continuation of our Google for India Digitization Fund’s efforts to increase access to smartphones, enhance connectivity to support new business models, and help companies on their digital transformation journey.”
Airtel’s promoter group – the Mittal family and Singtel
Aitel Google Deal Presently, Airtel’s promoter group – the Mittal family and Singtel – holds 55.93 percent of the telco and the rest is with the public. The Mittal family holds about 24.13 percent, directly and indirectly, while Singtel holds 31.72 percent.
According to the telecom operator Airtel, this new partnership will make it easier to access smartphones and customers. Also, the partnership in the world of the 5G network will be strengthened. Google will strengthen the cloud ecosystem in India. Airtel will be expanded with an investment of 300 million from Google. Along with this, digital programs will be delivered to the users at an affordable rate. If experts are to be believed, the Google-Airtel deal will make the digital road easier in India. Along with this, it will help in providing other digital services including the internet to the users at an affordable rate.
Shares gain on Google-Airtel deal
With the investment in Airtel, Google will get 71,176,839 equity shares at Rs 734 per share. In total, Google will have to pay Rs 5,224.38 crore ($ 700 million) to Airtel. With the announcement of this partnership, the stock rose 1.95 percent to a high of Rs 721 in early trade. At present, Airtel’s promoter group – the Mittal family and Singtel – holds 55.93 percent of the telco and the rest is with the public. The Mittal family holds around 24.13 percent stake, directly and indirectly, while Singtel holds 31.72 percent.
The $300 million amount will go towards implementing commercial agreements, which will include investments in scaling Airtel’s offerings that cover a range of devices to consumers via affordability programs as well as other offerings aimed at accelerating access and digital inclusion across India’s digital ecosystem.