BackBharti Airtel shares hit six-year high
In intra-day trade, the stock rose as much as 5.36% to touch a high of Rs448.70, a level last seen on 1 October 2009
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Mumbai: Shares of Bharti Airtel Ltd on Tuesday hit a six-year high after the company said it has entered into exclusive talks with France’s Orange to sell its subsidiaries in Africa.
In intra-day trading, the stock touched a high of ₹ 448.70, a level last seen on 1 October 2009. It gained as much as 5.36%, the sharpest gain since 29 May.
The stock closed at ₹ 445.25—a level last seen on 19 May 2009.
Year-to-date, the stock has gained 28%.
“Orange and Bharti Airtel International (Netherlands) have entered into an exclusive agreement to explore the possible acquisition by Orange of Airtel’s subsidiaries in Burkina Faso, Chad, Congo Brazzaville and Sierra Leone," Bharti Airtel said in a notice to BSE on Tuesday.
There is no certainty of any binding agreement as a result of these discussions, it added.
As of March, the company has consolidated debt of ₹ 66,367.20 crore.
A sale of the assets would raise funds as the New Delhi-based mobile phone operator, which is India’s largest, invests to counter heavy competition for customers in its home market. Bharti sold phone tower operating businesses in five African countries for more than $1.3 billion earlier this month, helping it reduce debt and cut costs, Bloomberg reported.
The company will post its June quarter (Q1) results on 4 August. According to 24 Bloomberg analysts, the company may post a net profit of ₹ 1,586.60 crore, while net sales will be at ₹ 23,328.9 crore.
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