You are currently viewing Brookfield in talks to buy Bharti Infratel

Brookfield in talks to buy Bharti Infratel

Brookfield Asset Management Inc. has approached to buy Bharti Infratel, India’s largest tower infrastructure provider, valuing the company at about $11 billion.
The Canada’s largest alternative asset manager has offered to buy a majority stake in Bharti Infratel for around 400 rupees per share. Earlier a group of investors, including KKR & Co., Canada Pension Plan Investment Board and Blackstone Group LP made an offer for a minority stake in the Gurgaon-based company, owned by billionaire Sunil Mittal.
No final agreements have been reached, as there is no definitive guarantee a final transaction will come to light. Over the year Bharti Infratel’s share value has dropped in the market, giving a total value of $10.1 billion to the company at present.
This deal will help Bharti Infratel to pay net debt that totaled 814.8 billion rupees ($11.9 billion) at the end of September. A panel was formed last month to evaluate options for monetizing its 72 percent stake in the tower company. Though, Bharti hasn’t settled on how large a shareholding it’s willing to sell of the business.
Carlyle Group LP has also considered to bid for a stake in Bharti Infratel. A takeover of Bharti Infratel would be Brookfield’s biggest investment in India. The Canadian firm has also agreed to buy Reliance Communications Ltd.’s mobile-phone tower business for an upfront payment of 110 billion rupees, in what would be the largest private-equity purchase in the country.
Brookfield is seeking additional investments in Indian infrastructure, including telecom towers. The firm has also agreed to buy about $1 billion of commercial property from Hiranandani Developers Pvt.