Tuesday, March 28, 2017

Bharati Airtel Solds Tower Stake to raise Rs 6194 crore

Bharti Airtel has sold a 10.3% stake in its tower unit to KKR and Canada Pension Plan Investment Board for Rs 6,194 crore ($952 million). After this also Airtel hold 62% in tower unit. It has sold 19 crore shares of its subsidiary Bharti Infratel for Rs 325 apiece.

Also read: Bharti Airtel to acquire Telenor group

On March 15, Bharti Airtel had scrapped its plan to sell a significant stake in Bharti Infratel, and instead transferred about 22% of its stake in the tower unit to its wholly owned subsidiary, Nettle Infrastructure Investment.

Sunil Mittal, chairman of Bharti Airtel said, This investment by a consortium of marquee long-term investors 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.

Bharti Airtel's stake in the tower unit is 40%, while that of Nettle Infrastructure's remains at 22%. Bharti Infratel has a consolidated portfolio of over 90,000 telecom towers, which includes over 38,500 of its own towers and the remaining from its 42% equity interest in Indus Towers. Besides Bharti Infratel, the other shareholders in Indus Towers are Vodafone India (42%), Idea Cellular (11%) and Providence Private Equity (5%).



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