Nov 14: As part of its debt reduction plans, Bharti Airtel Ltd, the Sunil Bharti Mittal Group flagship firm, via its wholly owned subsidiary Nettle Infrastructure Investments Ltd, announced the successful divestment of a total of 83 million shares of its subsidiary Bharti Infratel Ltd.
“Bharti Airtel Ltd via its wholly owned subsidiary, Nettle Infrastructure Investments Ltd, today announced the successful divestment of 83 million shares of its subsidiary Bharti Infratel Ltd through a secondary share sale in the stock market. The sale was for a total consideration of over Rs 3,325 crore (USD 510 Million) and was executed at a price of Rs 400.6 per share, representing a discount of c. 3.6% to the previous day’s closing price,” the company said.
According to the company, the allocation was done to global investors, fund managers and long only funds, including many repeat investors. Led by healthy investor appetite, the deal was upsized by over 25%, it said.
The company further said that it will primarily use the proceeds from this sale to reduce its debt. Following the closure of this transaction, Bharti Airtel and its wholly owned subsidiaries together have an equity holding of 53.51% in Bharti Infratel. JP Morgan, UBS and Goldman Sachs were joint placement agents for the transaction.
Earlier in August 2017, the company had announced successful divestment of a total of 6.753 crore shares of Bharti Infratel through a secondary sale to raise more than Rs 2,750 crore.
In last March, the company had completed secondary sale of over 190 million shares of Bharti Infratel to a consortium of funds advised by US-based private equity (PE) funds led by KKR & Co. and Canada Pension Plan Investment Board (CPPIB) for a consideration of Rs 6,194 crore.
Airtel shares were trading at Rs 499, up 0.19% from the previous closing of Rs 498.05, on BSE at 12.16 pm today.