New Delhi, May 3 (IANS) India’s largest telecom operator Bharti Airtel Friday said it will sell five percent stake to Doha-based Qatar Foundation Endowment for $1.26 billion.
As per the agreement, Qatar Foundation Endowment (QFE) will subscribe to 199,870,006 new shares of Bharti at a price of Rs.340 per share amounting to a total consideration of $1.26 billion (Rs.6,796 crores).
“The investment will further strengthen the capital structure and provide further flexibility for the company to deliver on its growth strategy,” Bharti Airtel said.
“I am delighted to welcome another high quality long-term institutional investor to our shareholder base. This strategic partnership with QFE demonstrates the confidence they have in the Company and our strategy for growth,” Sunil Bharti Mittal, chairman, Bharti Airtel said in a statement.
“In addition, this agreement exemplifies further strengthening of the already deep economic and cultural relations between Qatar and India,” he said.
Goldman Sachs advised Qatar Foundation Endowment on the deal.
Qatar Foundation Endowment is the investment arm of Qatar Foundation, a non-profit organisation wholly-owned by Qatar’s royal family.
“We are excited to be making a significant investment in one of the leading telecommunications companies in the world,” said Rashid Al-Naimi, acting chief executive officer, Qatar Foundation Endowment.
“As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets. QFE looks forward to supporting Bharti in realising the full potential of this world class business,” Naimi said in statement.