Conglomerate Bharti Enterprises may consider buying UK cellco Vodafone’s 4.4% stake in its mobile subsidiary Bharti Airtel, reported local news channel CNBC TV18.
The stake could be valued at around US$1.4bn, based on Bharti Airtel’s market…
Conglomerate Bharti Enterprises may consider buying UK cellco Vodafone’s 4.4% stake in its mobile subsidiary Bharti Airtel, reported local news channel CNBC TV18.
The stake could be valued at around US$1.4bn, based on Bharti Airtel’s market capitalisation on 15 June 2011.
But a source told CNBC TV18 that Bharti is looking to team up with some partners to buy the stake, as it could not afford that price on its own. Three financial sponsors are reportedly interested in the deal.
Bharti is currently saddled with debts incurred from the acquisition of Kuwait-based Zain’s African business and investments in its 3G spectrum.
Vodafone, for its part, has embarked on a plan to exit all minority investments 2013, having sold SFR in France to Vivendi and a 2.3% stake in China Mobile and in the process of selling its stake in Polish mobile operator Polkomtel.
At the end of March, Vodafone agreed to pay US$5bn for Essar’s 22% stake in the JV, via a put option, while concurrently exercising its call option to acquire Essar’s remaining 11% stake.
Vodafone will ultimately control 74% of the Indian company, complying with foreign direct investment (FDI) rules in India.
Neither Vodafone nor Bharti Airtel responded to emails before the press deadline.
