KKR, CPPIB invest $953m in India's Bharti Infratel

According to a statement the investors bought over 190 million shares in Bharti Infratel, about a 10.3% stake, for INR325 per share, a premium to the previous day’s closing price of INR313.85. After the sale Bharti’s stake in the subsidiary will drop to 61.7%, while KKR and CPPIB’s stake will become the single largest public shareholder block.

Proceeds from the purchase will primarily be used to reduce Bharti’s debt, which stood at INR839 billion as of March 2016, up from INR668 billion the year before. In its most recent annual report the company recorded revenue of INR965 billion and net profit of INR55 billion for the year ended March 2016, up from INR920 billion and INR52 billion the year before, respectively.

KKR is a previous investor in Bharti Infratel, having paid $250 million for a 2.6% stake in the company in 2008. The firm exited its investment two years ago for $272 million.

“As long-term partners of Bharti Infratel, we have intimately seen the company strengthen its position as a world-class telecom infrastructure provider. We now have a unique opportunity to partner with the company for a second time, and are very excited to work alongside this team to propel Bharti Infratel to the next level of growth,” said Sanjay Nayar, CEO of KKR India.

Bharti had earlier indicated it might sell a majority stake in the subsidiary, but later pared back its plans to sell no more than a 21.6% holding. Bharti Infratel manages a portfolio of over 90,000 telecom towers, making it one of India’s largest tower infrastructure providers in the country. The parent is a global telecommunications company with operations in 17 countries across Asia and Africa.

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• Topics
• South Asia
• Infrastructure
• Infrastructure
• PIPEs
• India
• KKR
• Canada Pension Plan Investment Board (CPPIB)
• TMT