Hughes and Airtel to combine their India VSAT operations

Combined entity to serve customers with world-class connectivity services

Mumbai, May 07, 2019: Bharti Airtel Limited (“Airtel”), one of the world’s leading integrated providers of telecommunication services, and Hughes Communications India Ltd. (HCIL), a subsidiary of Hughes Network Systems, LLC (HUGHES), the global leader in broadband satellite networks and services, today announced an agreement to combine their VSAT operations in India. The transaction is subject to approvals by relevant authorities.

As per the agreement, Hughes will have majority ownership in the combined entity and Airtel will have a significant shareholding. 

The combined entity will benefit from enhanced scale, improved operational efficiencies and wider market reach. The combined entity will be well positioned to leverage the demand for secure connectivity in a rapidly growing digital economy.

HCIL is the leading broadband satellite service operator in India. It provides a comprehensive range of broadband networking technologies, solutions, and services for businesses and governments. 

The combined entity will be able to introduce new VSAT and related technologies to deliver a wide range of quality products and service. The combined entity will continue to serve existing Hughes and Airtel customers.

Announcing the partnership, Partho Banerjee, President and Managing Director, Hughes Communications India Ltd said, “We are very excited about the synergies that this partnership will bring to the Indian ecosystem. These are exciting times for satellite broadband service providers as VSAT becomes more mainstream, driven by growing demand from both, enterprise and government segments.”

Ajay Chitkara, Director and CEO, Airtel Business said: “We are pleased to combine our VSAT operations with Hughes to serve the connectivity needs of Digital India. The partnership will bring amazing synergies to the forefront and combine the proven capabilities of both the companies. Customers can look forward to highly secure and reliable connectivity solutions across the length and breadth of India.”

Disclaimers

Bharti Airtel Limited (“Company”) is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make a rights issue of its Equity Shares and has filed the Letter of Offer dated April 19, 2019 (“LOF”) with the Securities and Exchange Board of India and BSE Limited and the National Stock Exchange of India Limited (together, the “Stock Exchanges”).  The LOF is available on the websites of SEBI at www.sebi.gov.in, BSE at www.bseindia.com and NSE at www.nseindia.com and on the websites of the Lead Managers to the Issue i.e. Axis Capital Limited (www.axiscapital.co.in), J.P. Morgan India Private Limited (www.jpmipl.com), Goldman Sachs (India) Securities Private Limited (www.goldmansachs.com), HSBC Securities and Capital Markets (India) Private Limited (www.hsbc.co.in/1/2//corporate/equities-global-investment-banking) and ICICI Securities Limited (www.icicisecurities.com). Investors should note that investment in equity shares involves a high degree of risk and are requested to refer to the section “Risk Factors” on page 18 of the LOF for details of the same. 

The Rights Entitlements and Rights Equity Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or under any securities laws of any state or other jurisdiction of the United States of America (the “United States” or “U.S.”) and may not be offered, sold, resold, allotted, taken up, exercised, renounced, pledged, transferred or delivered, directly or indirectly, within the United States or to or for the account or benefit, of U.S. persons (as defined in Regulation S under the Securities Act (“Regulation S”)) except pursuant to an applicable exemption from, or a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States.