Qatar Foundation Endowment to invest in Airtel
Qatar to take 5% stake in Indian operator via purchase of new shares
Qatari investment vehicle, Qatar Foundation Endowment, has agreed to invest $1.26 billion in Indian telecoms giant, Bharti Airtel.
The Qatar Foundation will make the investment through the purchase of 199,870,006 new Bharti Airtel shares, representing a shareholding of 5% in the telco.
Bharti Airtel said in a statement that the investment would further strengthen the capital structure and provide further flexibility for it to deliver on its growth strategy.
Sunil Bharti Mittal, chairman, Bharti Airtel, said: "I am delighted to welcome another high quality long-term institutional investor to our shareholder base. This strategic partnership with QFE demonstrates the confidence they have in the Company and our strategy for growth. In addition, this agreement exemplifies further strengthening of the already deep economic and cultural relations between Qatar and India. We look forward to a long and fruitful partnership with QFE".
Rashid Al-Naimi, acting CEO at QFE, said: "We are excited to be making a significant investment in one of the leading telecommunications companies in the world. As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets. QFE looks forward to supporting Bharti in realising the full potential of this world class business." Goldman Sachs acted as sole financial advisor to QFE on this investment."