The largest mobile operator in India, Bharti Airtel has sold 10.3 per cent equity stake in its mobile tower arm Bharti Infratel to a consortium of KKR and Canada Pension Plan Investment Board for or more than 61.9 billion rupees ($952.75 million).
Airtel said it will primarily use the proceeds from this sale primarily to reduce debt. The transaction will also help the Operator to raise much-needed funds as it battles new entrant Reliance Jio Infocomm.
“This investment by a consortium of marque long—term investors underlines confidence of the global investors in India’s growth story and the government’s Digital India initiative... It further reinforces the positive outlook for the telecom infrastructure sector,” said Sunil Bharti Mittal, Chairman, Bharti Airtel. “The long-term investment horizon of the investors aligns well with the capital needs and business cycles of Bharti Infratel.”