Airtel to acquire 20% stake from Warburg Pincus in its DTH arm for ₹3,126 crore

Bharti Airtel on Wednesday said that it will acquire Warburg Pincus affiliate’s 20% equity stake in its DTH arm Bharti Telemedia for ₹3,126 crore. The amount will be discharged primarily via issuance of 36.47 million equity shares of Airtel at a price of ₹600 per share (including a premium of ₹595 per equity share over face value of ₹5 per equity share); and up to ₹1,037.8 crore in cash. “The issuance of shares proposed through preferential allotment is subject to shareholders’ approval,” the company said in the regulatory filing.

The proposed transaction is a part of Airtel’s strategy to align the shareholding of its customer facing products, services and businesses under the same holding group. In December 2017, Bharti group agreed to sell 20% of its DTH unit, Bharti Telemedia to Warbug Pincus for ₹2,258 crore. “A full control and ownership over Bharti Telemedia allows Airtel to offer differentiated and converged solutions to customers so as to promote “One Home” strategy,” the leading telecom operator said.

Commenting on the announcement, Harjeet Kohli, group director, Bharti Enterprises said, “Airtel has always enjoyed a close and strategic partnership with Warburg Pincus, across its business verticals and geographies and we are delighted to have them back as part of Airtel’s exciting journey ahead, including in digital businesses.”