Bharti Airtel Shares Gain 2% On 20% Stake Sale In DTH Arm To Warburg Pincus

Bharti Airtel shares gained nearly 2 percent in morning Wednesday after the company decided to sell 20 percent stake in its DTH arm to US private equity firm

"an affiliate of Warburg Pincus, a global private equity firm, will acquire up to a 20 percent equity stake in Bharti Telemedia, the direct-to-home subsidiary of Airtel, for approximately USD 350 million," the country's largest telecom operator said in its filing on Tuesday.

Under the deal, Bharti Airtel will sell 15 percent stake in Bharti Telemedia and the remaining 5 percent will be sold by another Bharti entity, it added.

Macquarie said given Airtel's superior ARPUs and margins, the deal is valued at just 2 percent premium at EV/FY17 EBITDA. Valuations reflect Airtel's strong recent performance, it added.

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