Home >Industry >Telecom >Airtel buys 4.9% stake in Bharti Infratel for 2,882 cr

Bharti Airtel Ltd, through its wholly owned subsidiary Nettle Infrastructure Investments Ltd, on Wednesday acquired an additional stake of 133 million shares or 4.94% in tower company Bharti Infratel Ltd for 2,882.32 crore, according to a filing.

Prior to the acquisition, Bharti Airtel and Nettle Infrastructure held 23.04% and 13.69%, respectively, in Bharti lnfratel. With this acquisition by Nettle, the aggregate shareholding of Bharti Airtel and Nettle has increased from 36.73%in the September quarter to 41.66% in lnfratel.

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The stake was acquired from private equity firm Providence Equity Partners, which sold 77.08 million shares for an average of 215.44, aggregating to 1,660.61 crore.

These were held through P5 Asia Holding Investments Mauritius Ltd and EdgePoint Global Portfolio and EdgePoint Growth & Income Portfolio, which sold 31.21 million and 18.11 million shares, respectively, for 672.83 crore and 390.44 crore.

In September, Bharti Infratel’s board decided to proceed with the scheme for merger with Indus Towers, and that the cash consideration chosen by Vodafone Idea Ltd for its 11.15% stake in Indus Towers is expected to be about 4,000 crore.

The merger was completed last month.

Vodafone Idea has received cash consideration of 3,760.1 crore for its 11.15% shareholding in Indus, while Vodafone Group and Providence were allotted 28.2% and 3.2% respectively.

Bharti Infratel Ltd posted a 24% drop in consolidated net profit to 733 crore for the quarter ended September 2020 against a net profit of 964 crore in the corresponding period of 2019-20.

Consolidated revenue grew 2% to 3,695 crore during the reported quarter from 3,638 crore in the year-ago period.

Shares of Bharti Infratel closed at 224.80 on Wednesday, up 4.10% from its previous close, while the Sensex lost 0.08% to close at 4,4618.04. Bharti Airtel was up 1.16%.

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