DTH updates Bharti Airtel sells 20% stake in DTH arm

[Amit1079]

Warburg Pincus to acquire 20% stake in Airtel's DTH arm for $350 million | TelevisionPost.com

 

[Basil]

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

Bharti Airtel shares gain 2% on 20% stake sale in DTH arm to Warburg Pincus

 

[Vijay Krish]

Thank God :hands::hands:

Thank God really. Its a blessing for all airtel customers. I was so worried when Tata was in discussion to take over Airtel Digital TV. Such a big relief since I have more than Rs. 4000 in my airtel digital tv account.

 

[Sarkar]

"When pricing is low, capex is required to deliver better customer experience amid the upsurge in data throughput and demand," Vittal said during a recent earnings call.

While analysts expect the proceeds from the stake sale to go primarily towards this purpose, some guess the company to use part of the money to reduce debt.

"Cash raised from the stake sale in the DTH business to Warburg Pincus should enable Bharti Airtel to fund capex on the India wireless business," Morgan Stanley said in a note seen by ET.

JM Financial said the transaction, though not truly about value-unlocking, would help Bharti Airtel "marginally reduce its balance sheet leverage". It also indicated a possible listing of the Bharti group's DTH business in future.

DTH arm stake sale to help Bharti fight Reliance Jio - ET Telecom