Press Esc to close
Tuesday 02 September 2014
News updated at 12:06 AM IST
Weather
Max: 27.4°C
Min : 19.4°C
In Bangalore
Sunny day

Airtel to sell Rs 6,800-cr stake

New Delhi, May 3, 2013, (PTI) :
Reuters Image

Country’s largest mobile operator Bharti Airtel on Friday said it will sell 5 per cent stake to Doha-based Qatar Foundation Endowment for around Rs 6,800 crore to strengthen its capital structure and fund future growth plans.

Bharti Airtel will issue 199.87 million new shares to QFE at a price of Rs 340 apiece, 7.3 per cent higher than yesterday’s closing price.

“...it has entered into a binding agreement with Qatar Foundation Endowment (QFE), under which Bharti will issue 199,870,006 of its new shares to QFE, representing a shareholding of 5 per cent in the company, post issuance of the new shares,” Bharti Airtel said in a statement.


As a result of the deal, the promoter shareholding in the company may come down marginally.

According to BSE data, promoters together held nearly 68.55 per cent stake in Bharti Airtel, including 45.75 per cent by Bharti Telecom, as on March 2013.

Bharti Airtel is jointly promoted by Singapore-based Singtel and group companies of billionaire Sunil Mittal’s family. As per the agreement, QFE will subscribe to 199,870,006 new shares of Bharti at a price of Rs 340 per share, amounting to a total consideration of $1.26 billion (Rs 6,796 crore), it added. “I am delighted to welcome another high quality long-term institutional investor to our shareholder base...this agreement exemplifies further strengthening of the already deep economic and cultural relations between Qatar and India,” Bharti Chairman Sunil Bharti Mittal said in the statement.

Goldman Sachs acted as the sole financial advisor to QFE on this investment.
“As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets. QFE looks forward to supporting Bharti in realising the full potential of this world class business,” QFE Acting Chief Executive Officer Rashid Al-Naimi said.

QFE is a long-term global investor with a broad mandate to make direct and managed investments, the statement said.

Go to Top

Photo Gallery
President Pranab Mukherjee grants degree to a student at the 14th convocation of the University...

President Pranab Mukherjee grants degree to a student at the 14th convocation of the University...

Fireworks on the occasion of 410th installation anniversary of Sri Guru Granth Sahib, the holy...

Fireworks on the occasion of 410th installation anniversary of Sri Guru Granth Sahib, the holy...

Left Front activists take part in a rally to observe anti-imperialist day in Kolkata on...

Left Front activists take part in a rally to observe anti-imperialist day in Kolkata on...

Flood water flows through Srisailam dam after its four crest gates were opened in Kurnool on...

Flood water flows through Srisailam dam after its four crest gates were opened in Kurnool on...

BJP president Amit Shah during a visit to Sree Padmanabhaswamy temple in Thiruvananthapuram on...

BJP president Amit Shah during a visit to Sree Padmanabhaswamy temple in Thiruvananthapuram on...

Prime Minister Narendra Modi shakes hands with Japanese Minister of Foreign Affairs Fumio...

Prime Minister Narendra Modi shakes hands with Japanese Minister of Foreign Affairs Fumio...

Actress & BJP MP from Chandigarh Kirron Kher speaks during a seminar on...

Actress & BJP MP from Chandigarh Kirron Kher speaks during a seminar on...

Prime Minister Narendra Modi and Japan's Prime Minister Shinzo Abe makes a toast during a banquet...

Prime Minister Narendra Modi and Japan's Prime Minister Shinzo Abe makes a toast during a banquet...

Congress president Sonia Gandhi prays in a temple during a visit to her constituency Rae Bareli...

Congress president Sonia Gandhi prays in a temple during a visit to her constituency Rae Bareli...

Congress president Sonia Gandhi in a village hut during a visit to her constituency Rae Bareli on...

Congress president Sonia Gandhi in a village hut during a visit to her constituency Rae Bareli on...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523