Airtel sells 10.3% share of Bharti Infratel to KKR and CPPIB

Bharti Airtel announced it has completed the sale of over 190 million shares of its subsidiary Bharti Infratel, to a consortium of funds advised by KKR and Canada Pension Plan Investment Board (CPPIB).

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.

Total value of the transaction is over INR 6,193.9 Cr (approx. US$ 951.6 million), executed at a price of Rs. 325 per share, Airtel said.

Bharti Airtel will primarily use the proceeds from this sale to reduce its debt.

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.

Sunil Bharti Mittal, chairman, Bharti Airtel, said the investment further validates that India is an attractive market for global investors, especially with the government’s Digital India initiative.

The investment further reinforces the positive outlook for the telecom infrastructure sector, Mittal said. “The long-term investment horizon of the investors aligns well with the capital needs and business cycles of Bharti Infratel.”

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