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Last Updated : Jul 19, 2018 09:59 AM IST | Source: Moneycontrol.com

Bharti Airtel in talks with Warburg Pincus to raise $1.5 billion: Report

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

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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.

First Published on Jul 19, 2018 09:59 am
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