“DTH is an integral part of our Homes strategy and this transaction is another step towards simplifying the shareholding of our customer facing businesses providing structural flexibility and ease of implementation. Airtel has always enjoyed a close and strategic partnership with Warburg Pincus, across its business verticals and geographies and we are delighted to have them back as part of Airtel’s exciting journey ahead, including in digital businesses,” Group Director, Bharti Enterprises, Harjeet Kohli said in the statement.

Airtel will issue its shares to the Warburg Pincus affiliate at a premium of around 0.50 per cent to the floor price determined as per regulations. The remaining consideration of around INR 937.8 crore shall be paid in cash on the closing date of the proposed transaction. There may also be minor customary closing adjustments not exceeding INR 1,000 million.

In December 2017, a Warburg Pincus affiliate, agreed to acquire 20 per cent equity stake in Bharti Telemedia Limited, the DTH arm of Airtel for US$350 million or over Rs2250 crore.

“Airtel was one of the earliest and most profitable investments for Warburg Pincus in India. We are delighted to be back as partners in Bharti Airtel through this transaction. We look forward to capitalising on the broad-based growth that the company is witnessing across its entire portfolio of businesses, including the digital build-outs,” said Managing Director and Head of Warburg Pincus India Vishal Mahadevia said.

Citigroup Global Markets India Private Limited acted as the financial advisor to Airtel and Credit Suisse Securities (India) Private Limited acted as advisors to Warburg Pincus in connection with this transaction. https://telecom.economictimes.indiatimes.com