Airtel to acquire 20% stake in Bharti Telemedia from Warburg Pincus
Bharti Airtel ("Airtel"), India's premier digital communications company, said it will obtain a Warburg Pincus affiliate's 20% equity stake in its own DTH arm Bharti Telemedia for a entire consideration of ~ INR 31,260 million that will be discharged primarily via issuance of ~36.47 million equity shares of Airtel at a cost of INR 600 per share; and up to INR 10,378 million in cash. The issuance of shares proposed through preferential allotment is subject to shareholders' approval.
The proposed transaction is part of Airtel's strategy to align the shareholding of its client facing Goods, services and businesses under the exact same holding group. A full control and ownership over Bharti Telemedia enables Airtel to provide distinguished and converged solutions to clients in order to promote "One Home" strategy.
Harjeet Kohli, Group Director, Bharti Enterprises stated, "DTH is an integral part of our Homes plan and This trade is another step towards simplifying the shareholding of the client facing businesses supplying structural flexibility and simplicity of implementation. Airtel has always enjoyed a close and strategic partnership with Warburg Pincus, across its business verticals and geographies and we're thrilled to get them back as part of Airtel's exciting journey ahead, such as in electronic businesses."
Airtel will issue its shares to the Warburg Pincus affiliate at a premium of ~0.50% to the floor cost Determined as per ICDR regulations. The rest of the thought of ~ INR 9,378 million will be paid in cash on the closing date of this proposed trade. There may also be minor customary closing adjustments not exceeding INR 1,000 million.
And most profitable investments such as Warburg Pincus in India. We are thrilled to return as partners in Bharti Airtel through this trade. We look forward to capitalising on the broad-based growth that the company is witnessing throughout its entire portfolio of companies, including the digital build-outs."
In December 2017, a Warburg Pincus affiliate, consented to acquire 20 percent equity stake in Bharti Telemedia. Suisse Securities (India) Private Limited acted as consultants to Warburg Pincus in connection with this transaction.