Airtel rings up Qatar after its profit plunges.
Airtel said that the deal would strengthen its capital structure and fund future growth plans. The company will issue 199.87 million new shares to QFE at a price of ` 340 apiece, 7.3 per cent higher than Thursday's closing price of ` 316.70.
" We entered into a binding agreement with Qatar Foundation Endowment ( QFE) under which Bharti will issue 199,870,006 of its new shares to QFE representing a share holding of five per cent in the company post issuance of the new shares," the company said in a statement. As a result of the deal, the promoter shareholding in the company may come down marginally. Airtel is jointly promoted by Singapore- based Singtel and group companies of Sunil Bharti Mittal's family.
QFE acting chief executive officer Rashid Al- Naimi said, " 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." QFE is a long- term global investor with a broad mandate to make direct and managed investment, the statement said.
The purchase by QFE-- an investment vehicle of the Qatar Foundation, controlled by Sheikha Mozah, the second wife of the country's emir-- pushes India ahead of China to top Asia's inbound league table for M& As.
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