India’s largest mobile operator, Bharti Airtel, is considering listing 10% of its tower unit Bharti Infratel, according to a notice on the Bombay Stock Exchange.
The company said it has appointed a committee of the board of directors to examine…
India’s largest mobile operator, Bharti Airtel, is considering listing 10% of its tower unit Bharti Infratel, according to a notice on the Bombay Stock Exchange.
The company said it has appointed a committee of the board of directors to examine options for an IPO. But Bharti stressed that there is no assurance the listing will eventually take place.
This announcement comes a few days after it was reported that the operator may issue new shares to public or institutional investors, seek external borrowings, or float Infratel in an attempt to boost revenues.
Bharti Airtel’s debt load has been weighed down by the acquisition of Zain’s African assets for US$10.7bn in 2010, and more specifically by a US$7.5bn loan taken out to finance the deal, according to reports.
A few weeks ago, rival operator Reliance Communications (RCom) was also close to listing its cable unit, Flag Telecom, in an attempt to cut its debt estimated at US$7bn.
But in late July it decided to halt the IPO, citing adverse market conditions. Regulatory uncertainties in the wake of the 2G scam are also believed to be responsible for the postponement of the listing.
In the past, the operator has sought to offload several assets, including its tower unit Reliance Infratel, to shore up its balance sheet. But a deal with local towerco GTL failed on alleged valuation differences.
