Bharti Airtel to transfer most of its Infratel stake to unit

NEW DELHI: Bharti Infratel said on Tuesday its majority shareholder Bharti Airtel will lower its direct stake in the telecom tower company by more than a half. Airtel’s unit Nettle Infrastructure Investments will buy up to 32% stake in Bharti Infratel by March 18, Infratel said in an exchange filing.
Airtel will own an 18.3% stake in Infratel after the transfer, down from its current stake of 50.33%. “Whenever Airtel transfers stake to Nettle Infrastructure, (eventually) they will sell the stake to a third party. This will help them raise money,” said a Mumbai-based an analyst, who did not want to be named.
Airtel, like its peers in the industry, has faced immense competition since the entry of Reliance Industries’ upstart Jio in late 2016 with its debts soaring and profit margins eroding.