In a significant business maneuver, Indian billionaire Sunil Mittal recently sold a 0.84% stake in Bharti Airtel, India’s second-largest telecommunications provider. This sale, amounting to roughly $976 million, was executed through the Mittal family’s investment arm, Indian Continental Investment.
A portion of these shares, approximately 25%, was acquired by Bharti Telecom, a group firm aiming to bolster its control in Airtel. The remaining 75% was purchased by well-known global and domestic investors, as noted in an official filing. According to Bloomberg, buyers included GQG Partners LLC, Fidelity Investments, Lazard Inc, SBI Life Insurance Co., and ICICI Prudential Life Insurance Co.
This strategic move comes on the heels of Airtel’s impressive Q3 financial results. The company’s net profit soared by 460.9% year-on-year, an achievement attributed to stronger mobile business performance in India, currency gains in its African markets, and the consolidation of Indus Towers.
The sale of Airtel shares supports Mittal’s broader goal of increasing Bharti Telecom’s influence in Airtel. Currently, Bharti Telecom holds around 40.47% of the telco, and it plans to methodically increase its stake further. This is expected to reinforce Airtel’s market position while managing its financial leverage cautiously.
The proceeds from this transaction are earmarked for further investments in global markets. Notably, the funds will help refinance loans Bharti Enterprises incurred when acquiring a 24.5% stake in BT Group last year. Thus, Mittal’s decision is poised to aid in financial restructuring and expansion ventures beyond Indian borders.
