BHARTI INFRATEL LTD. (INFRATEL.BO) Moving -3.98% in Session

BHARTI INFRATEL LTD. (INFRATEL.BO) Moving -3.98% in Session

Bharti Airtel, the country's largest telecom operator by subscribers, will sell a 3.7 per cent stake in its tower unit, Bharti Infratel, to institutional investors.

The over 6 crore shares were sold at a price of Rs. 380.6 per share, representing a discount of 4% to the previous day's closing price.

"It will help company lower its debt", the source said No immediate comments were received from Bharti Airtel.

At 09:44 hours IST, Bharti Infratel was trading at Rs 382.40, down 3.90 percent and Bharti Airtel was at Rs 419.75, up 0.49 percent on the BSE. UBS and J P Morgan were the bankers for the transaction, Airtel said. The share divestment was done through Nettle Investments, a wholly owned subsidiary of Bharti Airtel.

Further the company added, "The allocation was done to global tower company investors, fund managers and long only funds, including many repeat investors". The sale would fetch Rs 2,569.21 crore ($403.33 million) gross of transaction costs, advisory fees, and statutory levies.

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To recall, Bharti Airtel's reported 75 percent decline in its first quarter profit from Rs 1,462 crores to 367 crores in the three months ended 30 June.

Bharti Airtel and Nettle jointly hold 61.65 percent in Bharti Infratel. Now the company said its equity holding stood at 58%.

By the end of fiscal year 2016-17, the company sold 10.3 per cent stake in its mobile tower arm to a consortium of KKR and Canada Pension Plan Investment Board for Rs 6,193.9 crore.

Faced with vast competition since the entry of Reliance Jio, it has been taking measures to retain customers.

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