The Indian Telecom giant Bharti Airtel has decided to sell controlling share in its mobile tower arm Bharti Infratel and has decided to monetise 21.63 per cent equity in the company. Bharti Airtel is selling or transferring 400 million shares to its wholly owned venture Nettle Infrastructure Investments Limited or to any potential investor.
The company spokesperson said, that the Board has decided that the company will undertake a sale/transfer of up to 400 million Infratel equity shares owned by company which is over and above a controlling stake in Infratel, in such tranche(s), at such time(s) and for such consideration as may be deemed fit to its wholly-owned subsidiary Nettle Infrastructure Investments Limited and/or to any other potential investor(s).
On October 25, 2016, got a Committee of Directors authorized to analyze the options for leveraging of a significant stake in Bharti Infratel.
Post the transfer process of 400 million shares in Bharti Infratel, Bharti Airtel will be having 50.33 percent direct stake in the company, the potential investor Nettle investments will be having a share of 21.63 per cent and another shareholder will be having 28.04 percent stake in Bharti Infratel. The total Consolidation of tower base of Bharti Infratel, including its Indus are stood at 90,225 towers at the end of 2016.
The Telecom giant came with a 50 percent decline in its net profit last quarter December,2016 and its mobile tower arm registered a whopping 25 percent hike in consolidated net profit at Rs 620 crore for the same quarter. It posted a net profit of Rs 495 crore in the same period last fiscal 2015-16. Bharti Airtel revenue got a shot by 10 percent to Rs 3,400 crore during the October-December quarter of 2016-17, as against Rs 3,105.5 crore posted in the same period of 2015-16.
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