Bharti Airtel Ltd said on Thursday that it has finalized a $1 billion investment transaction with Google International LLC, with the search giant owning 1.2 percent of India's second-largest telecom service provider.
Sunil Mittal's business has granted Google preferred shares worth over 5,224 crores, with the remaining $300 million spent through commercial agreements over the next five years.
"The company's'special committee of directors for preferential allotment' has approved the preferential allotment of 71,176,839 equity shares of the face value of 5 each fully paid up to Google International LLC (Google) at an issue price of 734 per equity share (including a premium of 729 per equity share)," the carrier said in a note to the BSE on Thursday.
As a result, Google will own about 1.2 percent of the company's total post-issue equity shares, or approximately 1.17 percent on a fully diluted basis. The news comes after the Competition Commission of India gave its permission last week.
Google said in January that it will invest up to $1 billion in Airtel over the next five years through a 1.28 percent stock acquisition for $700 million and a commercial deal for $300 million on mutual terms.
The investment comes on the heels of Google's $4.5 billion investment in Reliance Jio in July 2020, both of which were made through the Google for India Digitization Fund.