Bharti Airtel on Wednesday said it will acquire a 20 per cent equity stake held by an affiliate of Warburg Pincus in its DTH arm Bharti Telemedia for Rs 3,126 crore.

As part of the transaction, Airtel will issue around 3.647 crore shares at a price of Rs 600 per share with Rs 1,037.8 crore paid in cash. It will value the DTH arm at around Rs 15,630 crore.

In a regulatory filing, Bharti Airtel said the issuance of shares through preferential allotment is subject to shareholders’ approval.

In December 2017, the Warburg Pincus affiliate had agreed to acquire the stake in Bharti Telemedia Ltd, the DTH arm of Bharti Airtel.

The preferential allotment represents a premium of one per cent to the closing price of the Bharti Airtel stock on the exchanges on Wednesday. On the BSE, the scrip settled at Rs 594.05, largely unchanged from its previous close of Rs 594.

According to the company, the proposed transaction is part of a strategy to align the shareholding of its customer facing products, services and businesses under the same holding group.

According to Bharti Airtel, a full control and ownership over Bharti Telemedia would allow it to offer differentiated and converged solutions to customers so as to promote “One Home” strategy.

“DTH is an integral part of our homes strategy and this transaction is another step towards simplifying the shareholding of our customer facing businesses providing structural flexibility and ease of implementation,” Harjeet Kohli, group director, Bharti Enterprises, said while commenting on the transaction.