Airtel Sells 10.3 Percent Stake of Bharti Infratel for Rs. 6193.9 Cr

Bharti Airtel, today announced that they have successfully sold over 190 million shares of its subsidiary Bharti Infratel representing 10.3 percent, to a consortium of funds advised by KKR and Canada Pension Plan Investment Board (“CPPIB”). The total value of this secondary deal is over Rs. 6193.9 crores (approx. Rs. 951.6 million), which also dubs to a price of Rs. 325 per share.

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Bharti Airtel will primarily use the proceeds from this sale to reduce its debt. Following the closure of this transaction, Bharti Airtel’s equity holding in Bharti Infratel stands at 61.7 percent, and that of KKR and CPPIB at 10.3 percent.

Sunil Bharti Mittal, Chairman, Bharti Airtel, said, “This investment by a consortium of marquee long-term investors underlines the confidence of the global investors in India’s growth story and the government’s Digital India initiative in particular. It further reinforces the positive outlook for the telecom infrastructure sector. The long-term investment horizon of the investors aligns well with the capital needs and business cycles of Bharti Infratel.”

Just after the announcement, the shares of Bharti Airtel were up by 1.89 percent today morning, evaluating at Rs. 318.45 per share. That said, the share of Airtel was opened at Rs. 314.85.

This transaction makes it KKR’s second investment in Bharti Infratel. Previously, the funds managed by KKR had invested in Bharti Infratel during the period 2008 to 2015. Post this transaction, the stake held by KKR and CPPIB (combined) will be the single largest public shareholder block.

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ArjunGirish Gowdadheeraj kumarA. ModiArpon Roy Recent comment authors
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Girish Gowda
Girish Gowda

A foreign pensioner’s fund agency looking to get rich in the future on Indians back…

Arjun
Arjun

How can you be so sure they will make profits on their investment? It is a well known facts that Finacial investors make more money in other countries they invest rather than India. Japanese are the worst affected as most of their investments in this country has yielded almost nothing to them and turned red. Do you know about world’s investment in China and Singapore or other Asian countries? When a foreign fund makes investment it not only helps them but helps more to the entity they invest in. This is a market and only some makes money here.

dheeraj kumar
dheeraj kumar

ALL major telecoms including airtel under huge debits. either they r merging or selling stakes to rise funds. Lets see how long current fair last..?

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