Bharti Airtel sees Qatari investment

Indian operator group Bharti Airtel has sold a stake in its business to Qatar Foundation Endowment (QFE).  The Qatari investment group will acquire five per cent, almost 200 million new shares, of Airtel for $1.26bn.

The operator group said that the investment will help it to strengthen its capital structure and improve its flexibility, helping it to better implement its growth strategy.

Sunil Mittal, Bharti Airtel’s chairman, said that the strategic partnership demonstrates the confidence QFE has in the operator and in its 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”.

Rashid Al-Naimi, acting CEO at QFE, added that the stake gives the investment group 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 the investment.