Airtel sells 6.7 cr Bharti Infratel shares for Rs 2570 cr

James Marshall
August 8, 2017

Bharti Infratel is a provider of tower and related infrastructure sharing services.

The proceeds from the sale will be used to pare the company's debt.

Mumbai: Bharti Airtel, a co-promoter of Bharti Infratel, has mandated two investments banks to sell 3.7% stake in the mobile towers company for up to Rs 2,550 crore through block deals on the exchanges on Tuesday.

Shares of the company were trading lower by 0.10 points or 0.02% at Rs 417.60 per share on BSE Sensex intraday. JP Morgan and UBS have been mandated by Bharti Airtel to manage the share sale.

Earlier in March, Bharti Airtel sold 10.3% stake in Bharti Infratel to KKR and Canada Pension at Rs 325 per share, for a total consideration of Rs 6,194 crore, again to use the proceeds from the sale primarily to reduce its debt.

On a consolidated basis, net profit of Bharti Infratel declined 12.21% to Rs 663.90 crore on 9.66% rise in net sales to Rs 1593.40 crore in Q1 June 2017 over Q1 June 2016.

The sale was for a total consideration of over Rs 25.70 billion (over Dollars 400 million) and was executed at a price of Rs. 380.6 a share, representing a discount of c. 4% to the previous day's closing price.

Block deal is a trade, with a minimum quantity of 5 lakh shares or minimum value of Rs 5 crore, executed through a single transaction, on the special block deal window.

"Airtel is in process of offloading 3.7 per cent stake in Bharti Infratel held through Nettle Infrastructure".

Other reports by Click Lancashire

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