It has been learnt that, Bharti Airtel is in talks to sell around 10% in its hived tower company `Bharti Infratel` to a private equity (PE) player for around USD 1.1 billion, reports Economic Times. According to sources, the company has been in talks with two leading PE players for the deal, namely, Singapore government`s investment arm Temasek and US-based Warburg Pincus.
The company however, is currently in the process of transferring its mobile telecom towers and related infrastructure to Infratel, its wholly-owned subsidiary. The company had about 40,000 towers during March 2007, and as part of an ongoing USD 3.5 billion expansion plan it is currently in the process of doubling the numbers by the fiscal end.
Last week, the company announced that its subscriber base has crossed 50 million. It has seen around 90% increase in subscribers from 19.6 million in financial year 2006 to 37 million in the financial year 2007.
Relince Communications recently completed the private placement of 5% in its telecom infrastructure company, Reliance Telecom Infrastructure (RTIL) for Rs 270 billion and Bharti`s move to unlock value in its tower arm follows it.
Earlier this year, Bharti had given Temasek Holdings the option of picking up an indirect 4.99% stake in Bharti Airtel. On July 3, when the transaction was announced, the value of the 4.99% stake, based on that day`s market price, was just under USD 2 billion.
Source: My Iris