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Bharti Airtel to purchase Warburg Pincus stake in DTH enterprise for Rs 3,126 crore – Instances of India


NEW DELHI: Bharti Airtel on Wednesday stated it would purchase 20% stake in its DTH arm Bharti Telemedia from an affiliate of Warburg Pincus for about Rs 3,126 crore. The Warburg Pincus affiliate, Lion Meadow Funding, had acquired the fairness for Rs 2,310 crore in 2018.
The transaction shall be discharged primarily through issuance of about 3.64 crore fairness shares of Airtel at a value of Rs 600 per share and as much as Rs 1,037.8 crore in money, Bharti Airtel stated.
“The proposed transaction is part of Airtel’s strategy to align the shareholding of its customer facing products, services and businesses under the same holding group… A full control and ownership over Bharti Telemedia allows Airtel to offer differentiated and converged solutions to customers so as to promote ‘One Home’ strategy,” the corporate added.
Airtel stated it would challenge its shares to the Warburg Pincus affiliate at a premium of about 0.5% to the ground value decided as per ICDR (Subject of Capital and Disclosure Necessities) rules.
“The remaining consideration of Rs 937.8 crore shall be paid in cash on the closing date of the proposed transaction. There may also be minor customary closing adjustments not exceeding Rs 100 crore,” it stated.
Bharti Telemedia DTH enterprise had reported 1.7 crore subscribers as of December 31 final 12 months.
“DTH is an integral part of our homes strategy and this transaction is another step towards simplifying the shareholding of our customer facing businesses providing structural flexibility and ease of implementation,” Harjeet Kohli, Group Director, Bharti Enterprises stated.
He stated Airtel has had a detailed and strategic partnership with Warburg Pincus, throughout its enterprise verticals and geographies. “We are delighted to have them back as part of Airtel’s exciting journey ahead, including in digital businesses,” Kohli stated.
The DTH enterprise of Airtel had recorded round 6% development within the third quarter ended December 31, 2020 on a year-on-year foundation.
“We look forward to capitalising on the broad-based growth that the company is witnessing across its entire portfolio of businesses, including the digital build-outs,” Vishal Mahadevia, managing director and head of Warburg Pincus India stated.
Airtel stated it has arrange a particular committee to judge choices for reorganising its companies and shareholding construction, as the corporate sharpens deal with its digital and non-telecom companies.



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