Bharti Airtel Gains On Plans To Buy Subsea Cable Network From Orascom
Bharti Airtel’s deal is for an undisclosed amount.
Shares of country's largest telecom firm Bharti Airtel Ltd. rose as much as 0.9 percent to Rs 305 after it announced its agreement to acquire a subsea cable network of Egyptian firm Orascom Telecom Media and Technology Holding SAE that connects India and Europe via the Middle East.
This was the stock’s first advance in five trading sessions.
The Orascom unit, Middle East North Africa Company Submarine Cable Systems SAE (MENA-SCS), owns and operates a subsea optic network connecting Mumbai, Oman, Saudi Arabia, Egypt and Italy, Bharti said in a stock-exchange filing.
The decision to divest MENA-SCS was in line with OTMT’s strategy of divesting its non-core assets.
Bharti Airtel didn’t disclose financial details of the proposed acquisition. The management sees it as another step towards providing seamless global connectivity.
The additional capacity will enable Airtel to serve the growing demand for data services and enterprise services across its footprint of 18 countries across South Asia and Africa.Ajay Chitkara, director and CEO, global voice and data business, Bharti Airtel
The proposed acquisition of MENA-SCS is expected to further strengthen Airtel's global network that currently runs across 2,25,000 route kilometers, covering 50 countries and 5 continents.
(With inputs from PTI)
