The proceeds will be used to pay off part of the company's Rs 95,000-crore debt, and to counter the increased competition in the Indian telecom market
Bharti Airtel is in talks with Warburg Pincus to raise around $1.5 billion by selling 15 percent of Bharti Airtel International, its holding company for African operations, according to a report by The Economic Times.
The proceeds will be used to pay off some of the company's Rs 95,000-crore debt and to counter the increased competition in the Indian telecom market.
"The proposed transaction is a precursor to its planned listing of the African business in the overseas market in which Bharti Airtel aims to raise a similar amount," a source was quoted as saying by the newspaper.
The deal is likely to be completed by December. Bharti Airtel's Africa unit will reportedly be valued at $8-9 billion for the transaction.
Incidentally, Warburg Pincus was the first marquee investor to invest in Bharti Airtel in the early 1990s.
In December 2017, Airtel had announced that a Warburg Pincus affiliate would buy up to 20 percent stake in its direct-to-home arm Bharti Telemedia for $350 million.
As a part of the deal, Bharti Airtel sold 15 percent stake in the subsidiary, while the remaining 5 percent was sold by another group entity.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.