Bharti Airtel declines for 2nd day

Bharti Airtel slipped 0.60% to Rs 524.75, declining for the second day.

The stock has lost 1.04% in two sessions from its recent closing high of Rs 530.25 recorded on 19 March 2021.

In the past one month, the stock has fallen by 7.07% while the benchmark Sensex has added 0.34% during the same period.

Airtel Africa, a subsidiary of Bharti Airtel, announced the signing of agreements to sell its telecommunications tower companies in Madagascar and Malawi to Helios Towers, a leading independent telecommunications infrastructure company in Africa.

Airtel Africa's tower portfolios in these two markets together comprise 1,229 towers which form part of the Group's wireless telecommunications infrastructure network.

The transactions, comprising two separate agreements, one in respect of each jurisdiction, are subject to customary closing conditions including required regulatory approvals and are not inter-conditional on each other. The transactions are expected to close in or around calendar Q4 2021. The aggregate gross consideration for the transactions is expected to be approximately $108 million.

In addition, Airtel Africa has entered into exclusive memorandum of understanding agreements for the potential sale of its tower assets in Chad and Gabon to Helios Towers.

The proposed transactions are subject to the signing of definitive legal agreements for sale, including customary closing conditions such as required regulatory approvals. The proposed transactions are not inter-conditional and are expected to close before the end of the company's fiscal year 2022.

The proceeds from the transactions and the proposed transactions will be used to reduce Airtel Africa's external debt and to invest in network and sales infrastructure in the respective operating countries.

Airtel Africa is a provider of telecommunications and mobile money services, with a presence in 14 countries across Africa.

Bharti Airtel is a global telecommunications company with operations in 18 countries across South Asia and Africa

On a consolidated basis, Bharti Airtel reported a net profit of Rs 853.60 crore in Q3 FY21 as against net loss of Rs 1,035.30 crore in Q3 FY20. Net sales during the quarter jumped 24.2% year-on-year (Y-o-Y) to Rs 26,517.80 crore.

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