Airtel sells 10% stake in Bharti Infratel for Rs 6,194 crore

 Bharti Airtel has sold 10.3% stake in Bharti Infratel to a consortium of funds for approximately Rs 6,193.9 crore.

Bharti Airtel has successfully completed secondary sale of over 19 crore shares of its subsidiary Bharti Infratel representing 10.3% to a consortium of funds advised by KKR and Canada Pension Plan Investment Board (CPPIB) for a total consideration of over Rs 6,193.9 crore (approximately $951.6 million), executed at a price of Rs 325 per share, the telecom services provider said.

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%.

 and that of KKR and CPPIB at 10.3%, the company added.
 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.

 “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,” Bharti Airtel chairman Sunil Bharti Mittal said.