Airtel to buy back 20 % of Warburg Pincus’s DTH arm for 3,126 cr

On Wednesday, Bharti Airtel said it will buy a 20 percent stake in its DTH subsidiary, Bharti Telemedia, owned for $3,126 crore by an affiliate of the private equity company Warburg Pincus. With this shift, Bharti Airtel will gain complete control of her DTH arm.

Bharti Airtel announced on Wednesday that it will purchase a 20 percent stake in its DTH unit, Bharti Telemedia, held by an associate of Warburg Pincus, a private equity group, for $3,126 crore. Bharti Airtel will gain full control of her DTH arm with this move.

Telecom Major claimed that this deal is part of its plan to match its customer’s shareholding with the goods, services, and companies of the same holding company. Total control and ownership of Bharti Telemedia enable Airtel to provide consumers with differentiated and converged technologies to support the ‘One House’ strategy, it mentioned.

The Company stated, “Airtel will issue its shares at a premium of approximately 0.50 percent to the Warburg Pincus affiliate at the floor price calculated according to ICDR (Issue of Capital and Disclosure Requirements) regulations. The outstanding amount shall be paid in cash on the deadline of the proposed deal of approximately ⁇ 937.8 crores.”

It also added that there could also be small customary closing changes not exceeding 100 crores.

In December 2017, Warburg Pincus decided to buy a 20 percent stake in Bharti Telemedia Ltd via an associate company.

“Airtel was one of the earliest and most profitable investments for Warburg Pincus in India,” Vishal Mahadevia, MD and Head of Warburg Pincus India, said.

He continued,” Via this deal, we are pleased to be back as Bharti Airtel partners. We look forward to capitalizing on the broad-based success, including digital build-outs, that the business is seeing through its entire portfolio of companies”.

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