Bharti Airtel Looks To Raise $421 Million From Infratel Stake Sale
The stake sale is aimed at reducing net debt, Bloomberg had reported earlier.
Institutional Share Sale
- Bharti Airtel looking to raise up to $421 million by selling stake in its tower unit.
- Airtel will sell 6.7 crore shares or 3.7 percent stake in Infratel through Nettle Infrastructure Investments.
- Shares will be sold at Rs 378-397.8 apiece, a discount of 0-5 percent from Monday’s closing price.
- The stake sale is aimed at reducing Bharti Airtel’s stake.
India's largest telecom operator Bharti Airtel Ltd. is looking to raise up to $421 million by selling stake in its tower unit, Bharti Infratel, through another subsidiary, Bloomberg reported having accessed the term sheet of the institutional share sale.
Nettle Infrastructure Investments Ltd., the wholly owned subsidiary of Bharti Airtel, and 11.3 percent stakeholder in Infratel, will sell 6.7 crore shares or 3.7 percent stake at Rs 378-397.8 apiece, according to Bloomberg. Nettle currently owns 20.9 crore shares in Bharti Infratel.
The stake sale is aimed at reducing debt, Bloomberg had reported earlier citing people familiar with the matter.
The Sunil Mittal-led operator had a consolidated net debt of around Rs 87,840 crore at the end of June. The 3 percent stake that Bharti Airtel is diluting is valued at around Rs 2,236 crore as per the current market price. Bharti Airtel holds 61.6 percent in the telecom tower company, including Nettle’s holding.
The stake sale will be the second one by Bharti Airtel this year. In March this year, the operator sold 10.3 percent stake in Infratel for Rs 6,194 crore to pare debt. A consortium led by Kohlberg Kravis & Roberts (KKR) and Canada Pension Plan Investment Board bought 19 crore shares at around Rs 325 a piece.
