The family of Bharti Enterprises’ Founder and Chairman Sunil Bharti Mittal may increase its stake in Bharti Telecom, the holding company of Bharti Airtel, from its other majority shareholder Singapore Telecommunications Ltd (Singtel), according to a report on August 24.
The hike in stake by the Mittal family may also result in restructuring of the shareholding of the company, according to the CNBC-Awaaz report that cited sources. According to the report, the Mittal family has also raised money through debt to buy the stake. However, when contacted, the members denied to comment to CNBC-Awaaz.
To be sure, the Mittal family and Singtel are the two shareholders in Bharti Telecom and own 50.56 percent and 49.44 percent stake, respectively. Bharti Telecom is the promoter company of one of India’s biggest telcom operator, Airtel, with 35.85 percent shareholding.
The development comes after Singtel, earlier today, held a board meeting on the first quarter of the company.
CNBC-Awaaz further reported, citing sources, that the shareholding structure of the company will also change after Bharti Telecom’s stake purchase from promoter Singtel, adding that after this deal, the Mittal family’s control and clout in the company may increase.
Furthermore, the report also stated that Mittal family has also raised the necessary amount for this deal via loans. This deal is expected to be done for Rs 7,500 crore. They will have to pay about 9 percent interest on this amount.
Meanwhile, shares of Bharti Airtel on Wednesday ended 0.18 percent higher at Rs 738.90 a piece on BSE against the previous close. Moneycontrol