INSUBCONTINENT EXCLUSIVE:
Bharti Infratel Ltd said on Tuesday mobile carrier and its majority shareholder Bharti Airtel Ltd will lower its direct stake in the telecom
tower company by more than a half.
Airtel's unit Nettle Infrastructure Investments will buy an up to 32 per cent stake in Bharti Infratel
by March 18, Infratel said in an exchange filing.
Airtel will own an 18.3 per cent stake in Infratel after the transfer, down from its
current stake of 50.33 per cent.
"Whenever Airtel transfers stake to Nettle Infrastructure, (eventually) they will sell the stake to a third
This will help them raise money," said a Mumbai-based an analyst, who did not want to be named.
Airtel, like its peers in the industry, has
faced immense competition since the entry of Reliance Industries' upstart Jio in late 2016 with its debts soaring and profit margins
eroding.
Singapore Telecommunications Ltd said last week it will buy roughly $525 million worth Airtel stock as part of Airtel's plan to
raise $4.6 billion through shares and bonds.
Nettle will buy Infratel shares for up to Rs 362.45 each, a premium of up to 13.4 per cent to
the stock's closing price on Monday
Nettle already owns a 3.18 per cent stake in Infratel.
Bharti Infratel shares fell as much as 3.4 per cent to Rs 309.
