The Competition Commission of India (CCI) on Tuesday cleared Bharti Airtel's proposal to increase its stake in Indus Towers, following a buyback of shares by the telecom infrastructure company.

Indus Towers is a passive telecom infrastructure provider. It deploys, owns, and manages passive telecom infrastructure for various mobile operators.

"The Commission approves an increase in the percentage shareholding of Bharti Airtel Ltd (Bharti Airtel) in Indus Towers Ltd (Indus Towers) to 50.005 per cent pursuant to buy back of shares by Indus Towers," CCI said in a release.

In August, Bharti Airtel announced it will hold over 50 per cent stake in Indus Towers after completion of the ongoing Rs 2,640-crore share buyback scheme of the telecom infrastructure firm.

Telecom infrastructure major Indus Towers commenced the buyback of over 5.67 crore shares at Rs 465 apiece on August 14, representing approximately 2.107 per cent of total number of equity shares in the paid-up share capital of the company.

Bharti Airtel, one of the promoters of Indus Towers, at present holds a 50 per cent stake in the company, as per exchange data.

In another release, CCI granted approval to Luxembourg-based CVC Capital Partners' proposal to acquire financial services company Aavas Financiers.

Aavas Financiers is registered with the National Housing Bank as a non-deposit taking housing finance company. The company's business activities include, provision of home loans, MSME business loans and loan against property.

"The proposed transaction relates to the acquisition of shares and control by the Aquilo House Pte Ltd (Acquirer) in Aavas Financiers (Target) pursuant to the share sale agreements executed amongst the Acquirer, the Target and certain existing promoters/ promoter group of the target," fair trade regulator said.

Aquilo House is an affiliate of private equity and investment advisory firm CVC Capital Partners Plc.

The competition watchdog also approved the mandatory open offer in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) rules.

In August this year, Aquilo House announced entering into definitive agreements to acquire equity shares constituting 26.47 per cent stake in Aavas Financiers from Lake District Holdings (an affiliate of Kedaara Capital), Partners Group ESCL and Partners Group Private Equity (Master Fund), LLC.

Pursuant to the execution of the definitive agreements has triggered an obligation of the purchaser to make an open offer in accordance with SAST norms.

As per Sebi norms, CVC Partners were under an obligation in terms of SAST (Substantial Acquisition of Shares and Takeovers) rules to make a public announcement of an open offer for acquiring the shares as the shareholding of the firm exceeded the threshold limit of 25 per cent.

The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.

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