Warburg Pincus to acquire 20% stake in Airtel DTH for Rs2,310 cr

Out of the 20 per cent, Bharti Airtel will sell its 15 per cent stake in direct-to-home arm and the balance will be sold by another Bharti entity which holds 5 per cent stake in the company.

"Bharti Airtel...and Warburg Pincus, a global private equity firm focused on growth investing, on Tuesday announced that an affiliate of Warburg Pincus will acquire up to a 20 per cent equity stake in Bharti Telemedia Limited, the DTH arm of Airtel, for approximately $350 million," both the companies said in a joint statement. Upon closing of the transaction, Airtel will own 80 per cent equity stake in Bharti Telemedia Limited.

"Airtel has enjoyed a very successful partnership with Warburg Pincus in the past and we are excited to partner with them once again in an attractive and fast growing space," Bharti Airtel MD & CEO (India & South Asia) Gopal Vittal said.

Bharti Telemedia had approximately 14 million subscribers and approximately $550 million in revenues during the 12- month period ended September 30, 2017. The company claims to have strong distribution infrastructure, with over 1,500 partners and over 1,58,000 recharge outlets in approximately 630 districts of the country. As part of the transaction, Viraj Sawhney, Managing Director, Warburg Pincus India, will join the board of Bharti Telemedia Limited, it added.