Bharti Airtel Services, a wholly-owned subsidiary of Bharti Airtel, has agreed to the acquisition of 49.45 lakh shares or 97.1 percent stake in Beetel Teletech, another Bharti Group company, according to a filing.

Pegging the cost of acquisition at Rs 669 crore, the filing said this acquisition is a part of the company’s strategy to enable indigenization initiatives within its ecosystem of telecom products in line with the Government’s policy of ‘Make In India’ and add distribution and service capabilities (including system integration) largely for the enterprise business, PTI reported.

“…as a part of group restructuring, Bharti Airtel Services Limited, a wholly-owned subsidiary company of Bharti Airtel Limited has agreed to the acquisition of 49,45,239 equity shares representing 97.1 percent stake in another Bharti Group company, Beetel Teletech Limited, which also has 49 percent stake in Joint Venture having two manufacturing facilities which produce telecom and networking products including those qualifying for Production Linked Incentive (PLI) Scheme,” the filing said adding that this is a cash transaction.

Consequently, Beetel will become a subsidiary of the company.

The acquisition is a related party transaction in terms of the provisions of SEBI listing regulations. Bharti Group companies namely Bharti Enterprises (Holding) Private Limited, Bharti (RM) Holdings Private Limited, Bharti (RBM) Holdings Private Limited, and Bharti (LM) Enterprises Private Limited hold a 97.1 percent stake in Beetel.

Beetel Teletech was incorporated on March 30, 1999.

On the strength of its in-house technical capabilities, relationship with global OEMs, and channel composing of a large number of channel partners, distributors, and retailers, it is engaged in designing and delivering technical solutions and services and distributing a wide range of products from IT peripherals, network, and enterprise solutions to fixed landlines and mobile accessories.

Beetel distributes a host of leading brands including Avaya, HP/Poly, Samsung, Siemens, QSC, RADWIN, Ruckus, RAD, ADVA, and Actelis.

Beetel also holds a 49 percent stake in a Joint Venture which has two facilities for the manufacturing of landlines, telecom, and networking products including products that are manufactured in compliance with the ‘Production Linked Incentive (PLI) Scheme to Promote Telecom and Networking Products Manufacturing in India’ notified by the Ministry of Communications, the BSE filing added.