Bharti Airtel, on Friday, said it would sell 5 per cent stake in the company to Doha-based Qatar Foundation Endowment (QFE) for $1.26 billion to strengthen its capital structure, and fund future growth strategies.
As per the agreement, QFE will subscribe to 199,870,006 (199.87 million) new shares of Bharti at a price of Rs.340 per share amounting to a total consideration of $1.26 billion (Rs.6,796 crore), the company said in a statement.
“I am delighted to welcome another high quality long-term institutional investor to our shareholder base. This agreement exemplifies further strengthening of the already deep economic and cultural relations between Qatar and India,” Bharti Chairman Sunil Bharti Mittal said.
The company, on Thursday, reported a net profit of Rs.508.6 crore for the quarter ended March 31, 2013, against Rs.1,005.9 crore in the corresponding period of the previous year.
“As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets,” Rashid Al-Naimi, Acting CEO, QFE, said.