Bharti Airtel Ltd shareholders had approved last Wednesday the deal to sell a 5% stake to the Qatar Foundation Endowment. The said deal is expected to be worth US$1.2 billion.
This is the first time a Qatari investment has been made with a publicly listed Indian firm. The controlling shares are owned by Indian billionaire Sunil Mittal and this sale would help the top telecommunications carrier in India reduce some of its outstanding debt calculated at US$11.7 billion.
The Qatar Foundation Endowment is an investment firm under the aegis of the Qatar Foundation. It is under the control and supervision of Sheikha Mozah, the wife of Qatar's ruler.
In a BSE filing, Bharti Airtel said, "All the items of business as contained in the notice of Extraordinary general meeting have been approved by the shareholders." The said meeting was held in New Delhi, where shareholders approved the issue and allotment of 199, 870, 006 equity shares at INR340 per share. The sale was made in order for Bharti Airtel would strengthen its caital structure as well as provide funds future growth plans.
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