Telecommunication provider Bharti Airtel has entered into a binding agreement with Qatar Foundation Endowment (QFE) under which Bharti will issue 199,870,006 of its new shares to QFE representing a shareholding of five per cent in the company.
As per the agreement, QFE will subscribe to 199,870,006 new shares of Bharti at a price of INR340 per share amounting to a total consideration of USD1.26bn (INR6796 crores).
The investment will further strengthen the capital structure and provide further flexibility for the company to deliver on its growth strategy.
Sunil Bharti Mittal, chairman, Bharti, says: "I am delighted to welcome another high quality long-term institutional investor to our shareholder base. This strategic partnership with QFE demonstrates the confidence they have in the Company and our strategy for growth. In addition, this agreement exemplifies further strengthening of the already deep economic and cultural relations between Qatar and India. We look forward to a long and fruitful partnership with QFE."
Rashid Al-Naimi, acting chief executive officer, QFE, says: "We are excited to be making a significant investment in one of the leading telecommunications companies in the world. As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets. QFE looks forward to supporting Bharti in realising the full potential of this world class business."
Goldman Sachs acted as sole financial advisor to QFE on this investment.
