Airtel sells 10.3 per cent stake in Bharti Infratel

Bharti Airtel, India's global telecommunication company, sold 10.3 per cent stake in its tower company Bharti Infratel to consortium of funds to raise Rs 6,193.9 crore.

The group of funds who bought the stake include KKR, a private equity firm and Canada Pension Plan Investment Board (CPPIB). After completion of this deal, the stake held by KKR and CPPIB will be the single biggest public shareholders' block.

This deal is being seen as a support for the long-term investors and favourable outlook for the telecom infrastructure industry. The long-term investment view of the investors is in line with the huge capital requirements and business cycles of Bharti Infratel.

The transaction was done at the cost of Rs 325 per share and Bharti Airtel will use the funds raised through this deal to minimise its debt. The total debt of Airtel after the acquisition of Telenor India stands at Rs 67,763 crore.

After the closure of the deal, Bharti Airtel’s equity stake in Bharti Infratel will be 61.7 per cent, and that of KKR and CPPIB, it will be 10.3 per cent.