By Adekunle Aliyu
New Delhi / Doha, Bharti Airtel global telecommunications services provider with operations in 20 countries across Asia and Africa, today announced that it 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 5% in the Company, post issuance of the new shares.
As per the agreement, QFE will subscribe to 199,870,006 new shares of Bharti at a price of INR 340 per share amounting to a total consideration of USD 1.26 billion (INR 6796 crores) . The investment will further strengthen the capital structure and provide further flexibility for the Company to deliver on its growth strategy.
Mr. Sunil Bharti Mittal, Chairman, Bharti commented:
“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”.
Speaking on the agreement, Rashid Al-Naimi, Acting Chief Executive Officer, QFE, said:
“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.