No decision yet on Bharti Infratel IPO: Mittal
Country's largest telecom service provider Bharti Airtel today said it has not yet decided on the possible initial public offering (IPO) of its telecom tower unit -- Bharti Infratel.business Updated: Sep 01, 2011 20:04 IST
Country's largest telecom service provider Bharti Airtel on Thursday said it has not yet decided on the possible initial public offering (IPO) of its telecom tower unit -- Bharti Infratel.
"We always view opportunities, but at this moment, there is no decision," Bharti Enterprises chairman and Group CEO Sunil Mittal told reporters here.
According to sources, Bharti Infratel is planning an IPO to raise at least $500 million later this year.
According to reports, the proposed IPO, partly to provide an exit to shareholders, is likely to value the company at about $10 billion, 20% lower than the valuation it had in February 2008, when US-based PE firm Kohlberg Kravis & Roberts (KKR) picked a 2% stake in it for $250 million.
Since the company had raised $1.25 billion in 2007-08 from PE firms, it needs to give them an exit option.
Bharti Infratel has more than 30,000 towers under operations. The company also holds 42% stake in joint venture tower company Indus Towers, which has over 1.10 lakh towers.
Besides, asked if the company wis looking at exiting its mobile value-added services business Comviva, Mittal said, "We are looking at all decisions but as of now, we are not actively engaged with anyone."
Investors in Comviva include Bharti, WestBridge Capital, Sequoia Capital India and Cisco Systems.
Talking about Bharti Airtel's Africa business, Mittal said, "Things are settling down in Africa and we are reporting strong revenues".