HOME > BUSINESS > Bharti Airtel sells 10% of Infratel to KKR, CPPIB at Rs 325 per share

Bharti Airtel sells 10% of Infratel to KKR, CPPIB at Rs 325 per share

A solar installation by Bharti Infratel

Bharti Airtel, India’s largest telecommunications services provider, said it sold 10.3% of its tower unit Bharti Infratel to funds advised by US private equity firm KKR and Canada Pension Plan Investment Board at Rs 325 per share.

The transaction has been done at a premium of around 3% to the stock’s opening price of Rs 315.00 on the NSE today.

With this, Bharti Airtel’s holding in Infratel falls to 61.7%.

KKR and CPPIB did not have any shares in the company before today’s transaction. This is the second time KKR has invested in Bharti Infratel. It sold its previous investment, acquired in 2008, two years ago.

The stake held by KKR and CPPIB will be the single largest public shareholder block.

The telecom company said it will use the total proceeds of Rs 6,193.9 cr to reduce its debt.

Airtel has tens of thousands of crores of debt, piled on as part of its efforts to boost its spectrum portfolio ahead of the data-driven expansion of services in India. The heavy investments, coupled with a decline in tariffs, have caused many analysts and investors to turn cautious on the sector.

Chairman Sunil Bharti Mittal said the investments were focused on the long term, and showed a “the positive outlook for the telecom infrastructure sector”.

Infratel, as a provider of towers and infrastructure, is expected to benefit from cut-throat competition in the space even if its parent bleeds. Among the tower company’s bigger clients is Reliance Jio Infocomm, the 4G services operator from the Reliance Industries group that has disrupted the telecom market with low tariffs.

Follow ULTRA.news
Reliance Jio crosses 15 cr subscriber mark; Idea, Vodafone back to growth Subscriber additions in Nov 2017 The Telecom Regulator's subscriber addition numbers for November showed that new operator Reliance Jio continued to lead the charts in terms of net subscriber addition, but rivals like Idea Cellular and Vodafone too have come back on the growt...
Reliance Jio unveils 3GB, 5GB daily packs at Rs 509, 799 New Plans After disrupting the market with its 1GB per day plans, Reliance Jio has unveiled new packs targeted at heavy users. Two new plans have been unveiled today that were not present on the company's website earlier -- a 3GB per day plan priced at Rs 509 and a 5GB dai...
Tata DoCoMo offers 1GB daily + free calls at Rs 179 with Airtel 3G Tata DoCoMo, which recently announced that it was moving its customers to Bharti Airtel's network before a merger of the two companies, has started offering unlimited calls and daily data. Even though users won't be able to latch on to Bharti Airtel's 4G network, they can use ...
Hedge fund Kora Management invests in Satin Creditcare Satin Creditcare Network Ltd, one of India's largest microfinance companies, said it has received an investment of Rs 80 cr from US-based hedgefund Kora Management. Kora's investment is part of the latest funding of Rs 205 that the company raised from institutional investors ...
Reliance Jio unveils 8 new plans, data price falls 32% Reliance Jio has unveiled eight new plans that have brought down the price of 4G data by 32% to Rs 3.56 per GB from Rs 5.19 per GB earlier. The new plans are available from Tuesday and will make most of the the company's existing plans irrelevant (see table below). The new ...
Jio Impact: 4G overtakes 2G in network size in India A single tower often hosts multiple tenants Reliance Jio, the telecom arm of Reliance Industries, has achieved what was considered impossible barely 18 months ago: India now has more 4G base stations than 2G base stations. In other words, 4G service providers in India have...
OrbiMed Asia invests $7.5 mln more in Vivimed Labs unit Vivimed Labs said it will receive $7.5mn investment from OrbiMed Asia into its API business as a follow on to the $42.5 mn invested in September 2017. At the time, Vivimed has said that the proceeds will be utilised for debt reduction at the parent entity level as well as for...
TRAI: India data price rises 22% in Q3; 4G accounts for 80% of data use When Mukesh Ambani launched his telecom venture a year ago, it was based on one key assumption: India is a data starved country, and given the right pricing, demand for the commodity is almost insatiable. Going by the latest industry data from the Telecom Regulatory Authority ...
RCom confirms sale of telecom assets to Reliance Jio An RCom exhibition stall Reliance Jio, the firm led by Mukesh Ambani, will walk away with most of the telecom assets of Reliance Communications, led by Mukesh's brother Anil. Rcom said it has "signed definitive binding agreements with Reliance Jio Infocomm Limited for sale...
Inter-ministerial group on telecom woes dismissed crisis theory, blamed telcos for high debt The problem of high debt levels faced by some telecom companies in India was of their own making and the government had a limited to role to play in resolving the same, the inter-ministerial group set up to address the concerns of telecom sector found. The cash flow issues fa...
Govt committed to concept of net neutrality – Manoj Sinha TRAI Chairman RS Sharma Telecom minister Manoj Sinha today said the government is committed to the "the fundamental principles and concept of net neutrality" and is studying the recommendations of the telecom regulator in this regard. The government is keen to ensure "non-...
BSNL posts lower loss, debt in FY17; Revival plan under preparation State-owned Bharat Sanchar Nigam Ltd, which had been seeing a steady recovery in its financial condition in the last three years, found it difficult to keep the recovery going in FY17. According to the latest data given by the Department of Telecom, the company reported a net...
Anil Ambani announces the end of Reliance Mobile Anil Ambani, who warned about the possibility of the emergence of a 'monopoly' in Indian telecom three months ago, today said he was hanging up on his consumer telecom business. Ambani, younger brother to Mukesh Ambani -- the chairman of Reliance Industries -- said the mobile...
Airtel, Idea & Vodafone to unveil 1GB/day pack at Rs 199 With Reliance Jio unveiling its first monthly tariff plans, all eyes are now on the incumbents -- Bharti Airtel, Idea Cellular and Vodafone -- to see how they will respond. Industry sources believe that the three operators will unveil a new 199 plan which gives 1 GB of data per d...
Reliance Jio launches monthly plans 199 & 299 with 1.2 & 2 GB per day As expected, Reliance Jio has launched its first monthly plans -- Rs 199 for 1.2 GB per day and Rs 299 for 2 GB per day. The plans were anticipated after the newcomer unveiled its permanent plans on Diwali -- more than a month ago. The plans price data at roughly the same ...
BSNL, Reliance Jio testing network tie-up – Minister State-owned Bharat Sanchar Nigam Ltd is currently testing an intra-circle roaming agreement with Reliance Jio in Karnataka circle, telecom minister Manoj Sinha said. However, he did not clarify whether the agreement was to allow BSNL users to tap into Reliance Jio's 4G service...
BSNL 4G service likely to start with only 10,000 towers Bharat Sanchar Nigam Ltd, the government-controlled telecom company, is likely to start its 4G services with a modest 10,000 towers. In comparison, players like Idea Cellular, Vodafone and Bharti Airtel have between 50,000-100,000 4G towers, while Reliance Jio has around 200,...
Tata Teleservices shareholders to get 1 Bharti Airtel share for 2014 held Shareholders of Tata Teleservices Maharashtra Ltd -- the listed unit of Tata Tele -- will get one share of Bharti Airtel for every 2,014 shares held by them, the company said. The ratio of share issue indicates that the consumer mobile business of Tata Telservices Maharashtra...
Vodafone offers Rs 2,100 cashback on Rs 3,700 itel A20 smartphone Vodafone India announced a cash back deal on itel's A20 4G smartphone. Under the scheme, anyone who buys the mobile phone for Rs 3,690 will get a cashback of Rs 900 after 1.5 years and Rs 1,200 after another 1.5 years. However, the person has to use the specified Vodafone ...
Bharti Airtel buys Tigo Rwanda from Millicom International Bharti Airtel Limited said it has agreed to acquire 100% of Tigo Rwanda Limited, the local unit of Millicom International Cellular S.A.. Airtel already has operations in Rwanda and the acquisition "will consolidate the Rwandan telecom market and position Airtel as a strong nu...