Airtel to acquire 20 pc stake in Bharti Telemedia from Warburg Pincus

New Delhi [India], Feb 18 : Bharti Airtel will acquire Warburg Pincus affiliate's 20 per cent equity stake in its DTH arm Bharti Telemedia for Rs 3,126 crore which will be discharged primarily via issuance of 3.64 crore equity shares of Airtel at a price of Rs 600 per share and up to Rs 1,038 crore in cash.
The proposed transaction is part of Airtel's strategy to align the shareholding of its customer facing products, services and businesses under the same holding group. A full control and ownership over Bharti Telemedia allows Airtel to offer differentiated and converged solutions to customers to promote its 'One Home' strategy.
"DTH is an integral part of our Homes strategy and this transaction is another step towards simplifying the shareholding of our customer facing businesses providing structural flexibility and ease of implementation," said Harjeet Kohli, Group Director of Bharti Enterprises.
"Airtel has always enjoyed a close and strategic partnership with Warburg Pincus across its business verticals and geographies. We are delighted to have them back as part of Airtel's exciting journey ahead, including in digital businesses," he said in a statement.
Airtel will issue its shares to the Warburg Pincus affiliate at a premium of 0.5 per cent to the floor price determined as per Issue of Capital and Disclosure Requirements (ICDR) regulations.
The remaining consideration of Rs 938 crore will be paid in cash on the closing date of the proposed transaction. There may also be minor customary closing adjustments not exceeding Rs 100 crore.
Citigroup Global Markets India acted as the financial advisor to Airtel and Credit Suisse Securities India acted as advisors to Warburg Pincus in connection with this transaction.