Bharti Airtel to buys Warburgs 20 percent stake in DTH arm | Airtel to buy 20% stake in DTH from Bharti Airtel, Warburg Pincus for Rs 3,126 crore

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New Delhi30 minutes ago

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Bharti Telemedia had a turnover of Rs 2,923.8 crore for the financial year ended 31 March 2020.

  • 3.64 crore equity shares will be issued under the deal
  • Warburg Pincus bought 20% stake in 2017

Bharti Airtel will buy a 20% stake in its direct-to-home (DTH) arm Bharti Telemedia. This stake will be purchased from Warburg Pincus. The deal between the two companies for this stake is for Rs 3,126 crore. Warburg Pincus bought this 20% stake in Bharti Telemedia for Rs 2,258 crore in 2017.

Bharti Airtel to issue 3.64 crore shares to Warburg Pincus

As per the deal, Bharti Airtel will issue 3.64 crore equity shares to Warburg Pincus at Rs 600 per share. The face value of this share will be Rs 5, which will be issued with a premium of Rs 595. Also, Bharti Airtel will make a cash payment of Rs 1,037.8 crore. The company says the deal is part of a strategy to bring products, services and businesses into a holding group for Airtel’s customers.

Airtel DTH has over 1.7 crore subscribers

Bharti Airtel has said that it will issue shares to Warburg Pincus-linked entity Leon Meadow Investment Ltd at a premium of around 0.5%. An amount of Rs 937.8 crore will be given in cash on the last date of the proposed transaction. Apart from this, there can also be minor closing adjustments, the amount of which will not exceed Rs 100 crore.

Bharti Airtel set up special committee

In another statement, Bharti Airtel has said that the Board of Directors has constituted a special committee of directors. This committee will look at remodeling the business and shareholding structure. This committee will send appropriate suggestions to the board.

Warburg Pincus gets the most profit from Airtel

Vishal Mahadevia, MD, Warburg Pincus India, says that out of the total investment made in India, Airtel has received the highest profit. We are happy to return as a partner of Bharti Airtel through this deal. Bharti Airtel has appointed Citigroup Global Markets India Private Limited as financial advisor for this transaction. Warburg Pincus appointed Credit Suisse Securities as advisor.

Bharti Telemedia had a turnover of Rs 2,923 crore last year

Bharti Telemedia had a turnover of Rs 2,923.8 crore for the financial year ended 31 March 2020. Airtel DTH and Airtel Digital TV had revenues of Rs 789.2 crore in the third quarter of the current financial year. Whereas, a year ago, revenue of Rs 746.1 crore was achieved in the same period. Airtel Digital TV is currently offering a total of 648 channels. It consists of 85 HD channels.

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