Airtel completes Bharti Infratel’s 11% stake sale to Nettle

Airtel 3G tower
Bharti Airtel has completed the sale of 11.32 per cent stake in Bharti Infratel to Nettle Infrastructure Investments for Rs 6,806 crore.

Nettle is a wholly-owned subsidiary of Bharti Airtel.

“The company has today completed an inter-se transfer of 11.32 per cent stake in Bharti Infratel to Nettle Infrastructure Investments,” said a regulatory filing by the company on Wednesday.

Post the said inter-se transfer, Bharti Airtel will hold 50.33 per cent while Nettle will hold 11.32 per cent stake in Bharti Infratel, the remaining 38.35 per cent shall be held by public / other shareholders.

Earlier, Bharti Airtel announced the completion of the secondary sale of 10.3 percent stake or over 190 million shares in its subsidiary Bharti Infratel to a consortium of funds advised by KKR and Canada Pension Plan Investment Board for over INR 6,193.9 core or approx. $951.6 million.

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 percent, and that of KKR and CPPIB at 10.3 percent.

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.