Bharti Airtel (Airtel) sold a 10.3 per cent stake in its telecom tower unit to a consortium of funds for a total consideration of over ₹ 6,193.9 crore (about $951.6 million).

Bharti Airtel sold over 190 million shares of its subsidiary Bharti Infratel Ltd to the consortium, which was advised by private equity player KKR and Canada Pension Plan Investment Board (CPPIB), at ₹325 apiece.

“Bharti Airtel will primarily use the proceeds from this sale to reduce its debt,” Airtel said. “Following the closure of this transaction, Bharti Airtel’s equity holding in Bharti Infratel stands at 61.7 per cent, and that of KKR and CPPIB at 10.3 per cent.”

This is KKR’s second investment in Bharti Infratel. Previously, funds managed by KKR had invested in Bharti Infratel between 2008 and 2015.

Post this transaction, the stakes held by KKR and CPPIB (combined) will be the single-largest public shareholder block.

“The long-term investment horizon of the investors aligns well with the capital needs and business cycles of Bharti Infratel,” said Sunil Bharti Mittal, Chairman of Bharti Airtel.

Last month at the Mobile World Congress in Barcelona, Mittal had said that Bharti Infratel had received bids from several players, including KKR.

“As long-term partners of Bharti Infratel, we have intimately seen the company strengthen its position as a world-class telecom infrastructure provider. We now have a unique opportunity to partner with the company for a second time,” said Sanjay Nayar, CEO of KKR India.

While shares of Bharti Airtel closed at ₹340.65 on the BSE on Tuesday, up 0.61 per cent from the previous close, Bharti Infratel’s shares closed at ₹318.75, up 1.98 per cent from the previous close.

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