The board of Bharti Airtel has decided not to monetise a controlling stake in its tower arm Bharti Infratel for now.
Instead the board has decided that the company undertake a sale/ transfer of up to 40 crore Infratel equity shares owned by the company which is over and above a controlling stake in Infratel, “in such tranche(s), at such time(s) and for such consideration as may be deemed fit to its wholly-owned subsidiary, Nettle Infrastructure Investments Limited (Nettle) and/or to any other potential investor(s) (collectively ‘the Transfer(s)’),” the company said in a filing to stock exchange.
Airtel, on October 25, 2016, had authorised a Committee of Directors to evaluate options for monetisation of a significant stake in Bharti Infratel. Post the transfer or sale of 40 crore shares, Bharti Airtel will directly have 50.33 per cent stake, Nettle or the potential investor 21.63 per cent and other shareholder will have 28.04 per cent stake in Bharti Infratel.
The consolidated tower base of Bharti Infratel, including its share in Indus Towers, stood at 90,255 towers as of December 31, 2016. While Bharti Airtel posted around 50 per cent decline in its net profit for the third quarter ended December 31, 2016, its mobile tower arm registered 25 per cent increase in consolidated net profit at ₹620 crore for the same quarter. It had posted a net profit of ₹495 crore in the same period of 2015-16.
The consolidated revenue of Bharti Infratel increased by 10 per cent to ₹3,400 crore during the October-December quarter of 2016-17, as against ₹3,105.5 crore posted in the same period previous year.