Bharti Airtel gains as Warburg Pincus to buy 20% stake in Bharti Telemedia

Bharti Airtel rose 0.65% to Rs 527.35 at 10:19 IST on BSE after the company announced that Warburg Pincus will acquire up to a 20% equity stake in its DTH arm Bharti Telemedia for approximately $350 million.

The announcement was made after trading hours yesterday, 12 December 2017.

Meanwhile, the S&P BSE Sensex was down 49.59 points or 0.15% at 33,178.40.

On the BSE, 41.75 lakh shares were traded on the counter so far as against the average daily volumes of 77.49 lakh shares in the past one quarter. The stock had hit a high of Rs 533.50 and a low of Rs 522.80 so far during the day. The stock had hit a 52-week high of Rs 565 on 3 November 2017. The stock had hit a 52-week low of Rs 289.25 on 26 December 2016.

The stock had outperformed the market over the past one month till 12 December 2017, rising 5.2% compared with the Sensex's 0.59% rise. The scrip also outperformed the market over the past one quarter, gaining 30.66% as against the Sensex's 3.24% rise. The scrip also outperformed the market over the past one year, surging 58.84% as against the Sensex's 24.46% rise.

The large-cap company has equity capital of Rs 1998.70 crore. Face value per share is Rs 5.

Bharti Airtel and Warburg Pincus, a global private equity firm focused on growth investing, announced that an affiliate of Warburg Pincus will acquire up to a 20% equity stake in Bharti Telemedia, the DTH arm of Bharti Airtel, for approximately $350 million. Of this, 15% stake will be sold by Bharti Airtel and the balance by another Bharti entity which holds 5% stake. Upon closing of the transaction, Bharti Airtel will own an 80% equity stake in Bharti Telemedia.

Bharti Telemedia is one of the largest Direct-To-Home (DTH) paid TV service providers in India and offers services under the Airtel TV brand. It had approximately 14 million subscribers and approximately $550 million in revenues during the 12-month period ended 30 September 2017.

Bharti Airtel's consolidated net profit fell 63.7% to Rs 586.10 crore on 11.7% decline in net sales to Rs 21776.90 crore in Q2 September 2017 over Q2 September 2016.

Bharti Airtel is a leading global telecommunications company.

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