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Bharti Airtel clarifies stand on Amazon’s reported $2 billion stake buy; check what the company has to say

Telecom giant Bharti Airtel on Friday clarified its stand on reports of Jeff Bezos-led Amazon considering a $2 billion stake buy in the telco. Bharti Airtel said that the “Company routinely works with all digital and OTT players and has deep engagement with them to bring their products, content and services for our wide customer base.” However, the telco added that at this stage, no such proposal is in consideration. The clarification comes a day after a Reuters report claimed Amazon was in talks with Bharti Airtel to buy equity stake worth $ 2 billion. The news of Amazon buying a stake in the telco sent the stock price surging 5.5% on Thursday.

Bharti Airtel while issuing the clarification has said that it is concerned with ‘such’ media reports which are published despite appropriate timely clarifications by the respective companies. The telecom giant added that such speculative reports move the stock price on the bourses which further leads to unwarranted consequences, Bharti Airtel said while adding that such moves can result in reputational impact for the company. Recently a report claimed Google to be interested in Vodafone-Idea, another telecom company. The report sent Vodafone-Idea stock price up by a massive 35% in the last week of May.

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Also Read: Amazon eyes $2 billion stake in Bharti Airtel after Facebook picks equity in Mukesh Ambani’s Reliance Jio

Shares of the Bharti Airtel have so far jumped 43% from the last week of March. Bharti Airtel’s promoter group, Bharti Telecom, earlier last month raised Rs 8,433 crore, selling 2.75% stake in the telecom major to institutional investors through the secondary market. With the stake sale Sunil Bharti Mittal led-Bharti Airtel’s promoters looking to go debt-free. The move to cut debt to zero will also help Bharti Airtel, improving the telecom giant’s credit profile as it will stand to benefit from deleveraging on a consolidated basis including any debt of the promoter holding company.

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