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Qatar to buy 5% stake in Bharti Airtel for $1.26 billion

Staff writer |
Bharti Airtel will sell a 5% stake to Qatar Foundation Endowment for $1.26 billion to strengthen its capital structure and fund growth plans.

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Bharti is the world's fourth-biggest mobile phone company by customers. The company will issue 199.9 million new shares to Qatar Foundation Endowment at 340 rupees per share, or a 7.3% premium to the stock's last close.

Qatar Foundation Endowment is the investment vehicle for Qatar Foundation, a non-profit organisation wholly-owned by the Qatar royal family.

Bharti posted a dfrop of a quarterly profit, 13th in a row, with almost 50% fall in profits compared with a year earlier. The company's profit was $94.7 million (5.1bn rupees) during the quarter, down from 10 billion rupees during the same period last year.

At the same time, Bharti Airtel Holdings Singapore, a wholly owned subsidiary of Bharti Airtel Ltd and Warid Group, announced that Bharti will acquire 30% equity stake of Warid in Airtel Bangladesh Limited. With this transaction, Bharti will own 100% of Airtel Bangladesh Limited. The company had acquired 70% stake in Warid Telecom, Bangladesh in January 2010.

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