The parent of Bharti Airtel Ltd. is seeking about $1 billion by selling a stake in the mobile carrier after its share price hit a record on signs the years-long price war is about to end.
Bharti Telecom Ltd. is selling 150 million Bharti Airtel shares at a floor price of Rs 558 each, according to terms of the deal obtained by Bloomberg. That implies a discount of about 6 per cent to its close on Friday.
Bharti Airtel shares climbed to a record Rs 598.8 last week after it posted a 14 per cent increase in user revenue in the quarter through March. Investors have been betting the worst is behind the New Delhi-based operator as it faces fewer competitors than in the recent past.
The entry of billionaire Mukesh Ambani's Reliance Jio Infocomm Ltd. in 2016 accelerated a consolidation in the market with a billion-plus subscribers -- second only to China, forcing some to merge and a few to drop out. The shake-up has left Jio and Vodafone Idea Ltd. as Bharti Airtel's only non-state rivals.
The deal is one of the largest follow-on offerings in the country this year, data compiled by Bloomberg show. Bharti raised $3 billion in January from the sale of shares and convertible bonds to help pay additional airwave and license fees after telecom operators lost a court case.
JPMorgan India Pvt. is the sole placement agent for the block trade.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
