NEW DELHI: Shares of Bharti Infratel climbed 3 percent in Tuesday’s trade after an ET report citing sources that private equity player KKR and pension fiant Canada Pension Plan Investment Board (CPPIB) are in talks with Sunil Bharti Mittal to acquire a significant stake in the listed tower firm.
Following the report, the stock rose 2.93 percent to hit a high of Rs 358 on BSE. Bharti AirtelBSE -0.52 %, the parent firm, had last week told stock exchanges that it had taken board approval to explore monetization of a significant stake in the tower arm.
Bharti AirtelBSE -0.52 % owns 71.96 percent stake in the company, while the rest is held by public shareholders. Sources told ET that Airtel was looking to divest up to 40 percent stake to a consortium of financial investors, making them the single largest shareholder bloc.
Depending on the valuation and the premium offered by the investors, it may also give up management control, the report noted. “The Infratel stake sale expected at around $4 billion based on current market value, is poised to become the largest telecom tower transaction in the country till date,” the report said.
