US private equity giant KKR and top Canadian pension fund Canada Pension Plan Investment Board ( CPPIB) have launched a $465 million block deal in Indus Towers as both investors eye an exit from the leading telecom tower company, multiple industry sources in the know told Moneycontrol.
Moneycontrol was the first to report the stake sale plans of the two investors in a report dated July 8, 2022.
"This has been in the works for a while. KKR is looking to sell its complete stake in Indus Towers, which stands at 4.85 per cent for $323 mn while CPPIB wants to sell a 2.14 percent stake for $142 million, post which the Canadian firm will be left with only a 0.5 per cent holding," said one of the persons above.
Silverview Portfolio Investments PTE Ltd is the name of the KKR entity which holds a stake in Indus Towers
"The floor price of the proposed block deal is Rs 205 per share, which represents a 7.64 percent discount to the last closing price of Rs 221.95 per share on January 31. BNP Paribas Securities is acting as the advisor on the deal, "a second person told Moneycontrol.
Both the persons above spoke to Moneycontrol on the condition of anonymity.
KKR, CPPIB and BNP Paribas could not be reached for immediate comment.
Moneycontrol has also reviewed a copy of the deal term sheet.
The Indus Towers stock price has risen by 22 per cent in the last three months.
In 2017, Bharti Airtel sold a 10.3 percent stake in Bharti Infratel to a consortium of investors including CPPIB & KKR. Funds managed by KKR had also previously invested in Bharti Infratel between 2008 and 2015.
Also read: American Tower Corp inks $2.5-bn deal to sell India unit to Brookfield-backed DIT
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