Airtel sells over 10% stake in subsidiary for `6,190 cr

Telecom major Bharti Airtel on Tuesday announced the sale of 10.3 per cent stake in subsidiary Bharti Infratel to a consortium of funds for over Rs 6,190 crore ($951 million). "Bharti Airtel announced the successful completion of the secondary sale of over 190 million shares of its subsidiary Bharti Infratel Ltd, representing 10.3 per cent, to a consortium of funds advised by KKR and Canada Pension Plan Investment Board (CPPIB) for a total consideration of over INR 6,193.9 crore, executed at a price of Rs 325 per share," a company release said here, reports IANS.

Bharti Airtel said it will primarily use the proceeds from the sale to reduce its debt. "Following the closure of this transaction, Bharti Airtel's equity holding in Bharti Infratel stands at 61.7 per cent and that of KKR and CPPIB at 10.3 per cent. "The stake held by KKR and CPPIB (combined) will be the single largest public shareholder block," the statement added.This is KKR's second investment in Bharti Infratel.