Brookfield, Blackstone in the fray to acquire 40% stake in Bharti Infratel

Investors are queuing up to buy a share in Mobile tower company Bharti Infratel. This move to sell stake in the tower company would mean additional cash flow for the debt-laden Bharti Airtel, say experts.

According to an independent telecom expert Mahesh Uppal, “The additional cash to an extent could mitigate the dent in revenues caused by having to compete with Jio's cut throat pricing.”However, the impact is expected to be only marginal.

According to some media reports, Blackstone Group and Canadian investor Brookfield are in race to acquire as much as 40% in Bharti Infratel.

According to media reports, Blackstone might bid in consortium with private equity fund KKR & Co and Canada Pension Plan Investment Board (CCPIB). While Brookfield is likely to bid on its own.

Earlier this month Bharti Infratel informed the Bombay Stock Exchange(BSE) that its holding company Bharti Airtel was evaluating options for monetisation of a significant stake in the company.

On October 25, Bharti Airtel had sought information regarding potential buyers from Bharti Infratel. Two companies signed a non-disclosure agreement with company in respect of the preservation of the confidentiality of information shared.

Bharti Infratel posted a 31% increase in consolidated net profit at Rs 776.6 crore for the September quarter of the current financial year (2016-17). It had registered net profit of Rs 591.3 crore in the same period of previous financial year.

At 1337 IST Shares of Bharti Infratel were trading at Rs 358.40, down 1.60% on the BSE.