Airtel sells Infratel stake for USD 350 million

News Wireless India 8 AUG 2014
Airtel sells Infratel stake for USD 350 million

Indian mobile operator Bharti Airtel has raised around INR 21.4 billion (approximately USD 349.6 million) from a share sale in its unit Bharti Infratel. Via this move, Airtel sought to comply with a rule that requires listed companies to have a minimum 25 percent public shareholding. Before the sale, Airtel held a 79.4 percent stake in its mobile tower unit Bharti Infratel. Airtel sold a 4.5 percent Infratel stake through the open market.

The offer was oversubscribed 2.4 times at INR 251.71 per share, compared with the floor price of INR 250 per share. Bank of America Merrill Lynch, UBS and JPMorgan were brokers on the sale.

According to Akhil Gupta, vice chairman of Bharti Enterprises, the proceeds from the offer will allow Bharti Airtel to further deleverage through debt reduction. Bharti Airtel had net debt of USD 9.6 billion at the end of June. The company recently sold about a fifth of its 15,000 telecom towers in Africa.

Categories:

Mobile

Companies:

Bharti Airtel,  Bharti Enterprises,  Infratel

Countries:

India

Tags:

Shareholders & subsidiaries, Network equipment, M&A buyouts & divestments

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