Bharti Infratel climbs 3% on tower deal buzz

NEW DELHI: Shares of Bharti Infratel surged nearly 3 per cent on Wednesday on a report that a KKR-led consortium comprising Canada Pension Plan Investment Board, Abu Dhabi Investment Authority and GIC Singapore is in discussions to acquire the telecom tower company Bharti Infratel and the world's largest wireless infrastructure company Indus Towers for $11 billion, multiple people in the know told ET.

Following the report, the stock rose 2.70 per cent to close the session at Rs 411 on BSE.

Bharti Infratel will first buy out either all or almost the entire 58 per cent shareholding of other partners — Vodafone, Idea Cellular and Providence Equity Partners — in Indus Towers, ET reported.

Once Bharti Infratel consolidates Indus Towers, the KKR-led consortium will increase its economic interest in the company from the prevailing 10 per cent to become the single largest shareholder, the report added.

Sources told ET that the consortium may end up owning 40-45 per cent stake, though the final shareholding will depend on the success of an open offer.