Blackstone and brookfield in the ring to acquire 40% stake in bharti infratel

The Client

Blackstone is a premier global investment and advisory firm that strives to provide solutions that create lasting value for its investors, its portfolio companies and society at large. Founded in 1985, Blackstone has 22 offices worldwide. Blackstone’s combined portfolio companies employ more than 700,000 professionals and rank as the equivalent of number 7 on the Fortune 500. As a leader in alternative assessment management, Blackstone preserves and protects more than $190 billion in assets for public and corporate pension funds, academic, cultural and charitable organizations, among others. The firm’s diverse range of funds makes private equity, real estate, credit and hedge fund investments all over the world. Additional practices include a leading independent financial advisor business, handling highly complex and critical mergers and acquisitions, restructuring and reorganization assignments for corporate and government clients on a global scale, along with fund placement services to alternative investment managers.

Brookfield Asset Management Inc. is a leading global alternative asset manager focused on property, renewable energy, infrastructure and private equity, with approximately $225 billion of assets under management. Based in Toronto and New York, we have over a 100-year history as an owner and operator of real assets, offering a range of public and private investment products and services which leverage our expertise and experience. We have more than 700 investment professionals and 55,000 operating employees working in 30 countries around the world. Brookfield is publicly listed on the NYSE, TSX and Euronext Amsterdam.

Blackstone And Brookfield In The Ring To Acquire 40% Stake In Bharti Infratel

In a bid to add cash flow to the debt- burdened Bharti Airtel, one of the group companies of the troubled Bharti Group- Bharti Infratel has stepped in for the rescue. Investors are busy vying with their competitors to pick up a stake in a reputed tower infrastructure provider, Bharti Infratel.

Though a marginal effect is expected from the move, the additional cash will undoubtedly reduce the dent in revenues spent on competing with cut-throat prices offered by Jio. According to some reputed media reports, the major competitors include one of the world’s prestigious investment firms, Blackstone and a leading Canadian investor Brookfield. A leading Telecom Tower infrastructure provider, Bharti Infratel is expected to sell an equity stake of around 40 percent.

The reports further stated that Blackstone is likely to bid in a consortium with an American private equity fund firm, KKR and Co. and Canada Pension Plan Investment Board (CCPIB) whereas, Brookfield is going to bid on its own.

Bharti Infratel earlier this month notified the Bombay Stock Exchange (BSE) that its parent company Bharti Airtel was on the lookout for monetization in the form of a notable stake in the company. Soon after, Bharti Airtel started to seek information from potential buyers- who were a part of Bharti Infratel. 2 companies had also signed a MoU with the company stating the preservation of shared confidential information.

Bharti Airtel acquires around 70% stakes in Bharti Infratel already, while the remaining shares are owned by public shareholders. It will be a win-win situation for both Bharti and Bharti Infratel if the analysts are to be believed. Profit or loss- only time will tell!

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