Airtel shares open higher as Warburg Pincus agrees to buy stake in DTH business
The telecom giant has agreed to sell part of its DTH business to U.S. private equity firm, Warburg Pincus.
- Airtel's shares were nearly 2% higher on BSE Sensex in early trade.
- Warburg Pincus has agreed to buy 20% of Airtel's DTH business.
- The investment will be of $350 million in Airtel's DTH biz.
Shares of Indian telecom major, Bharti Airtel opened higher after news that the company agreed to sell 20% share of its DTH business to Warburg Pincus, a private equity firm.
Airtel’s shares were up 1.60% or 8.40 points in early trade on BSE Sensex at Rs 529.90 per share.
During pre-market open, the operator’s shares were trading 1.56% lower on NSE at Rs 532.35 per share and then climbed nearly 1% to trade at Rs 529 apiece. Shares of the company had closed at Rs 523.85 on Tuesday on NSE.
In pre-open market trading the company’s shares were up 0.20% or 1.05 points at Rs 525 apiece on BSE Sensex.
The 30-scrip index, Sensex fell over 100 points today on the back of disappointing economic data. ADB has lowered India's 2017 growth forecast to 6.7%.
Sensex declined 104.55 points, or 0.31%, at 33,123.44 points while NSE Nifty slipped 29.60 points, or 0.28%, to 10,210.55 points.
US-based equity firm, Warburg Pincus will buy up to a 20% stake in the Airtel’s direct-to-home arm for $350 million, the company said in a BSE filing on Tuesday.
“Of this, 15% stake will be sold by Bharti Airtel and the balance by another Bharti entity which holds 5% stake,” Airtel said.
It had launched its Airtel TV business in 2007.
Airtel’s DTH business has nearly 140 lakh subscribers and $550million in revenues during the 12-month period ended September 30, 2017, the company said.
“Airtel has enjoyed a very successful partnership with Warburg Pincus in the past and we are excited to partner with them once again in an attractive and fast growing space. Airtel TV is very well positioned in the DTH space, and we are committed to grow our share of the market through a combination of innovation, value, engineering, customer service and distribution initiatives.”