Qatar has purchased a five percent shareholding in Bharti Airtel, the Indian telecoms firm for US$1.26 billion. This is another one of the overseas acquisitions undertaken by the Gulf kingdom in the third largest country in Asia.
The deal is done under the auspices of Qatar Foundation Endowment and an anonymous source familiar with the transaction said that the firm would be active in the operations of the telecommunications company. The source said, "QFE is in for the long term," as the firm would hold a seat at the company's board of directors.
According to the latest data from Thomson Reuters, the inbound mergers and acquisitions volume of India is now at US$9.83 billion for 2013. China has US$7.7 billion and Australia has US$6.9 million.
This is the first major investment by Qatar in a listed Indian firm. With the infusion, Bharti Airtel would receive much needed capital that only improves its balance sheet and provides funds for future growth plans.
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