Bharti Airtel, India’s largest telecom operator will sell 5 percent stake to Doha-based Qatar Foundation Endowment for $1.26 billion (~Rs. 6,800 crore) by issuing 199,870,006 new shares at a price of Rs. 340 apiece, according to a recent report from Economic Times. Bharti reported its 13th successive drop in quarterly profits yesterday, with a near 50 percent fall in profits compared with a year earlier. This move would ease the debt burden on Airtel.
“The investment will further strengthen the capital structure and provide further flexibility for the company to deliver on its growth strategy”, said Airtel in a statement. Sunil Bharti Mittal, Bharti Chairman said, “This agreement exemplifies further strengthening of the already deep economic and cultural relations between Qatar and India”.
Regarding the agreement, Rashid Al-Naimi, acting Chief Executive Officer, QFE, said, “As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets. QFE looks forward to supporting Bharti in realizing the full potential of this world-class business.”
Source: ET (PTI)