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Bharti Airtel gets shareholders nod for stake sale to Qatar Foundation

The telecom operator had announced the stake sale on May 3, to strengthen its capital structure and fund future growth plans.

BT Online Bureau | June 5, 2013 | Updated 18:10 IST

Bharti Airtel shareholders have approved sale of around 5 per cent stake in the company to Doha-based Qatar Foundation Endowment for about Rs 6,796 crore.

The telecom operator had announced the stake sale on May 3, to strengthen its capital structure and fund future growth plans.

In the EGM held in New Delhi, Airtel sought approval of shareholders for issue and allottment of upto 1,99,870,006 equity shares at an issue price of Rs 340 per equity share for an aggregate consideration of over Rs 6795.58 crore on preferential basis, among other issues.

"All the items of business as contained in the notice of extraordinary general meeting have been approved by the shareholders," the telecom major said in a filing to the Bombay Stock Exchange (BSE).

The deal with Qatar Foundation was announced after Bharti Airtel raised $1.5 billion through overseas bonds, mostly to pay off high interest loans and fund capex needs.

The company had a net debt of Rs 63,839.5 crore as on March 31, 2013.

For the 2012-13 financial year, Bharti Airtel registered a net profit of Rs 2,275.7 crore, its lowest in seven years. This was 46.6 per cent lower than Rs 4,259.4 crore in 2011-12.

Shares of Bharti Airtel closed 0.69 per cent lower at Rs 302 on the Bombay Stock Exchange on Wednesday.

With inputs from PTI

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