Telecom Lead India: Airtel will divest 5 percent stake in the company to Qatar Foundation Endowment for $1.26 billion.
As a long-term institutional investor, the Qatar Foundation will subscribe to 199.87 million new shares at Rs 340 per share.
Airtel did not share the final shareholding structure after inducting the Qatar Foundation as an institutional investor.
The investment will further strengthen the capital structure and provide further flexibility for the company to deliver on its growth strategy.
Bharti Airtel reported 50 percent fall in quarterly profit.
Sunil Bharti Mittal, chairman, Bharti Airtel, said: “This strategic partnership with QFE demonstrates the confidence they have in the company and our strategy for growth.”
Qatar Foundation for Education, Science and Community Development is a private, non-profit organization that serves the people of Qatar by supporting and operating programs in three core mission areas: education, science and research, and community development. The Foundation strives to nurture the future leaders of Qatar.
Its website says that the foundation also contributes to human development nationally, regionally, and internationally. In all of its activities, the Foundation promotes a culture of excellence in Qatar and furthers its role in supporting an innovative and open society that aspires to develop sustainable human capacity, social, and economic prosperity for a knowledge-based economy.
Rashid Al-Naimi, acting CEO, QFE, said: “We are excited to be making a significant investment in one of the leading telecommunications companies in the world. As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets.”
