Bharti Airtel via its wholly owned subsidiary, Nettle Infrastructure Investments, today announced the successful divestment of 67.53 million shares of its subsidiary Bharti Infratel through a secondary share sale in the stock market.
The sale was for a total consideration of over Rs 25.70 billion (over USD 400 million) and was executed at a price of Rs. 380.6 a share, representing a discount of c. 4% to the previous day's closing price.
Bharti Airtel will primarily use the proceeds from this sale to reduce its debt. Following the closure of this transaction, Bharti Airtel and its wholly owned subsidiaries together have an equity holding of 58% in Bharti Infratel.
The allocation was done to global tower company investors, fund managers and long only funds, including many repeat investors. UBS and J.P. Morgan were joint placement agents for the transaction.
Shares of the company declined Rs 0.05, or 0.01%, to trade at Rs 417.65. The total volume of shares traded was 52,474 at the BSE (12.04 p.m., Tuesday).