Global private equity firm Warburg Pincus is going to acquire up to a 20 percent stake in Airtel’s DTH arm Bharti Telemedia for $350 million.
Bharti Telemedia is among the largest in the over 65-million direct-to-home (DTH) paid subscriber market in the country. With around 14 million subscribers, Airtel’s DTH service holds a 21 percent market share as per the latest data from Telecom Regulatory Authority of India (TRAI).
It is to be noted that out of the 20 percent to be acquired by Warburg, 15 percent is expected to be sold by Bharti Airtel and the balance by another Bharti entity which holds a 5 percent stake.
The proceeds will be used to fund growth plans as the company looks to strengthen its hold in the country’s DTH market, which is in the midst of consolidation, Bureaucracy Today reports.