Shares of Bharti Airtel fell nearly 3 percent intraday on September 17 after a media report indicated that talks to sell stake in merged tower company has begun.
The telecom operator has begun talks to sell stake in merged company of Bharti Infratel and Indus Towers, reports CNBC-TV18 quoting unnamed sources.
ATC and Brookfield are interested parties to acquire the stake in the merged entity, sources said.
Bharti is hopeful that the potential transaction may fetch it $3.2-3.5 billion as the merged company is expected to have a valuation of $12-13 billion, sources said, adding the talks are at initial stage and would be taken forward post completion of Bharti Infra-Indus Towers merger.
The channel learnt from sources that the approval from Department of Telecommunication for Bharti Infratel and Indus Towers is likely by September-end.
Bharti Airtel declined to comment on the above story while ATC told CNBC-TV18 that they cannot comment on speculation and Brookfield is yet to respond to channel’s query.
Bharti Airtel will to hold 37.2 percent stake in merged entity which will own 1.63 lakh telecom towers across 22 service areas.
The merger of Bharti Infratel and Indus Towers is in final stages and waiting for approval from Department of Telecommunication.
ATC currently has 78,000 towers in India while Brookfield acquired Reliance Jio’s tower arm in July 2019 for $3.7 billion, which as a result holds 1.7 lakh towers.
The stock has been moving in a range Rs 30-40 for last four months. It was quoting at Rs 335.80, down Rs 8.10, or 2.36 percent on the BSE at 1128 hours.
News Source: MoneyControl