New Delhi, Dec 12 ()
Bharti Airtel today said an affiliate of private equity firm
Warburg Pincus
will acquire up to a 20 per cent stake in its DTH arm
Bharti Telemedia
for about USD 350 million (around Rs 2,310 crore).
Out of the 20 per cent, Bharti
Airtel will sell its 15 per cent stake in direct-to-home arm and the balance will be sold by another Bharti entity which holds 5 per cent stake in the company.
"Bharti Airtel...and Warburg Pincus, a global private equity firm focused on growth investing, today announced that an affiliate of Warburg Pincus will acquire up to a 20 per cent equity stake in Bharti Telemedia Limited, the DTH arm of Airtel, for approximately USD 350 million," both the companies said in a joint statement.
Upon closing of the transaction, Airtel will own 80 per cent equity stake in Bharti Telemedia Limited.
"Airtel has enjoyed a very successful partnership with Warburg Pincus in the past and we are excited to partner with them once again in an attractive and fast growing space," Bharti Airtel MD & CEO (India & South Asia) Gopal Vittal said.
Bharti Telemedia had approximately 14 million subscribers and approximately USD 550 million in revenues during the 12- month period ended September 30, 2017. The company claims to have strong distribution infrastructure, with over 1,500 partners and over 1,58,000 recharge outlets in approximately 630 districts of the country.
"The Indian Digital TV market is expanding rapidly and we believe that
Airtel DTH
is well positioned to capitalise on incremental growth in digitisation and new TV penetration in Tier 3 and 4 towns and rural areas," Warburg Pincus India, Managing Director and Co-Head, Vishal Mahadevia said.
The Airtel board has approved the transaction, which is subject to regulatory approvals, the statement said.
As part of the transaction, Viraj Sawhney, Managing Director, Warburg Pincus India, will join the board of Bharti Telemedia Limited, it added. PRS BAL
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