Bharti Airtel’s tower network, known as Bharti Infratel , is seeing some changes as of today. Airtel has decided to sell off its non-controlling equity (21.63%) to its own company, Nettle or any other potential buyer. There was talk about the company selling off Infratel’s controlling equity, but Airtel has decided to not take that route.
With this change, Infratel will still be under Airtel’s control as it holds a 50.33% stake in the company, whereas Nettle or any other buyer will have 21.63% and other investors will own 28.04% of the company.
Bharti Airtel managed to post a 50% loss in profits during the third quarter of 2016 (Oct-Dec), whereas the tower wing posted consolidated net profits of about 25% during the same period. Keeping this in mind, it makes sense for Airtel to sell off some of its non-controlling stake of Infratel, which has been doing pretty well over the past few months.
With the emergence ofReliance Jio , Bharti Airtel’s overall profits were expected to come down. But with Jio finally launching paid options for its customers, we hope to see a level playing field for all network operators in the months to come. One would argue that despite the emergence of Jio, Airtel has been pretty popular among the users thanks to its wide network reach and attractive 4G/3G offers.
It’s clear that the next few months will be very competitive for companies likeIdea Cellular , Vodafone, Reliance Jio and Bharti Airtel, with pricing wars expected to increase in the telecom industry.
With this change, Infratel will still be under Airtel’s control as it holds a 50.33% stake in the company, whereas Nettle or any other buyer will have 21.63% and other investors will own 28.04% of the company.
With the emergence of
It’s clear that the next few months will be very competitive for companies like
0 comments:
Post a Comment