Bharti Airtel set to receive nearly $950 million for the stake in Infratel.
Indian telecommunications operator Bharti Airtel sold a 10.3% stake in its tower business Bharti Infratel for $948 million to a consortium of funds advised by KKR and the Canada Pension Plan Investment Board. The Indian telco said it will use the proceeds to pay down debt.
Once approved, Bharti Airtel’s direct equity holding in its towers business will stand at 61.7%
“This investment by a consortium of marquee long-term investors underlines the confidence of the global investors in India’s growth story and the government’s Digital India initiative in particular,” said Bharti Airtel Chairman Sunil Bharti Mittal, in a statement. “It further reinforces the positive outlook for the telecom infrastructure sector. … The long-term investment horizon of the investors aligns well with the capital needs and business cycles of Bharti Infratel.”
Last week, Bharti Airtel sold a 21.63% stake in its towers business for a reported $1.9 billion to its subsidiary Nettle Infrastructure Investments. Bharti Airtel currently provides telecoms services in 17 countries across Asia and Africa.
Last month, Bharti Airtel agreed to acquire full control of Telenor’s Indian operation. The transaction is expected to allow Bharti Airtel to strengthen its competitive position in seven key telecom circles.
Global small cells shipments total 1.7 billion last year
In other infrastructure news, small cells shipments hit 1.7 million unit globally in 2016, an increase of 43% compared to the previous year, according to recent figures from IHS Markit.
The market recorded revenues of $1.5 billion in 2016, climbing 26% year-on-year, with Asia Pacific accounting for 59% of small cells shipments last year.
“Much of the growth was driven by an increase in rural and remote deployments – as well as strong indoor small cell activity from the enterprise and urban segments, which are seeing an increase in public venue deployments,” according to the report.
