Qatar Royal Family Buys 5% Stake in India's Bharti Airtel
Published on: 3rd May 2013
By: Ian Mansfield
India's Bharti Airtel says that it has raised USD1.26 billion by selling a 5 percent stake in the company to the Qatar Foundation Endowment (QFE) an investment company owned by the Qatari Royal Family
Bharti will issue just under 200 million new shares to QFE representing a shareholding of 5% in the Company, post issuance of the new shares. QFE is paying a 7.3% premium over the public share price for its investment.
In a brief statement, Bharti said that the investment will further strengthen the capital structure and provide further flexibility for the Company to deliver on its growth strategy.
The company currently has USD11.7 billion of debt and has been looking to pay down the ratio in advance of further investments in radio spectrum purchases and one-off spectrum fees being applied by the Indian government.