Bharti Airtel to acquire Warburg Pincus’ stake in Bharti Telemedia for $430m

Bharti Airtel has agreed to acquire a stake of 20% in its direct to home (DTH) arm Bharti Telemedia from a Warburg Pincus affiliate for about INR 31.26 billion ($430 million).

In this connection, the Indian digital communications company will issue around 36.47 million of its shares priced at INR 600 per share plus up to INR 10.37 billion ($140 million) in cash to the Warburg Pincus affiliate.

Bharti Airtel said that the proposed deal is part of its strategy to align the shareholding of its customer facing products, services, and businesses under the same holding group.

The digital communications company further stated that complete control and ownership over Bharti Telemedia enables it to provide customers with differentiated and converged solutions for promoting its “One Home” strategy.

Bharti Airtel to acquire Warburg Pincus’ stake in Bharti Telemedia for $430m. Photo courtesy of Ramesh NG/Wikimedia Commons.

Harjeet Kohli – Group Director of Bharti Enterprises said: “DTH is an integral part of our Homes strategy and this transaction is another step towards simplifying the shareholding of our customer facing businesses providing structural flexibility and ease of implementation.

“Airtel has always enjoyed a close and strategic partnership with Warburg Pincus, across its business verticals and geographies and we are delighted to have them back as part of Airtel’s exciting journey ahead, including in digital businesses.”

The Warburg Pincus affiliate had signed a deal in December 2017 to acquire the 20% stake in Bharti Telemedia.

Vishal Mahadevia – Managing Director and Head of Warburg Pincus India said: “Airtel was one of the earliest and most profitable investments for Warburg Pincus in India. We are delighted to be back as partners in Bharti Airtel through this transaction.

“We look forward to capitalising on the broad-based growth that the company is witnessing across its entire portfolio of businesses, including the digital build-outs.”

Bharti Airtel’s financial advisor for the deal was Citigroup Global Markets India, while Credit Suisse Securities (India) served as advisors to Warburg Pincus.