Airtel to maintain controlling stake in tower arm
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India’s Bharti Airtel has called off plans to sell a controlling stake in its infrastructure division Bharti Infratel, but still plans to sell or transfer a minority stake in the company.
The company’s board decided in a meeting held this week not to sell a controlling stake in the division for now.
Instead the company plans to sell or transfer up to 400 million shares in Infratel to either wholly-owned subsidiary Nettle Infrastructure Investments, any other potential investors or both.
After the transfer Airtel will hold a 50.33% stake in Infratel while Nettle or the new investors will hold 21.63%.
Bharti Infratel’s portfolio covers around 90,250 towers, the report states. These include the company’s own towers and its share of the assets of independent tower company Indus Towers, which was jointly established in 2007 by Infratel and other Bharti Group members, as well as Vodafone India and Idea Cellular.
The division reported a 25% increase in net profit to 6.2 billion rupees ($94.5 million) for the December quarter, which compares to a 50% decline in profit for Bharti Airtel.
Questions & Answers
Q.Why did Bharti Airtel decide not to sell a controlling stake in Infratel?
Why did Bharti Airtel decide not to sell a controlling stake in Infratel?
The company's board decided against selling a controlling stake for now during a meeting this week. The article does not specify the reasons for this decision at the current time.
Q.What is Bharti Airtel's new plan for its stake in Bharti Infratel?
What is Bharti Airtel's new plan for its stake in Bharti Infratel?
Airtel now plans to sell or transfer up to 400 million shares in Infratel. These shares could go to its subsidiary Nettle Infrastructure Investments, other investors, or a combination of both parties.
Q.How many tower assets does Bharti Infratel manage?
How many tower assets does Bharti Infratel manage?
Bharti Infratel's portfolio includes approximately 90,250 towers. This figure comprises its own towers and its share of assets from Indus Towers, which was established in 2007.
Q.How did Bharti Infratel's financial performance compare to Bharti Airtel's last quarter?
How did Bharti Infratel's financial performance compare to Bharti Airtel's last quarter?
Bharti Infratel reported a 25% increase in net profit for the December quarter, reaching 6.2 billion rupees. In contrast, Bharti Airtel experienced a 50% decline in profit during the same period.
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