(MENAFN- Kuwait News Agency (KUNA)) India's telecommunication giant Bharti Airtel announced on Saturday it has entered into an agreement with Qatar Foundation Endowment (QFE), under which Bharti will issue 199.9 million shares to QFE representing a shareholding of five percent in the company.
QFE will subscribe to these new shares at a price of INR 340 per stock amounting to a total consideration of USD 1.26 billion, Airtel's statement said.
"The investment will further strengthen the capital structure and provide further flexibility for the Company to deliver on its growth strategy," the statement said.
It quoted Sunil Bharti Mittal, Chairman of Bharti, as saying, "I am delighted to welcome another high quality long-term institutional investor to our shareholder base. This strategic partnership with QFE demonstrates the confidence they have in the Company and our strategy for growth. In addition, this agreement exemplifies further strengthening of the already deep economic and cultural relations between Qatar and India. We look forward to a long and fruitful partnership with QFE." Speaking on the agreement, Rashid Al-Naimi, Acting Chief Executive Officer, QFE, said, "We are excited to be making a significant investment in one of the leading telecommunications companies in the world. As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets. QFE looks forward to supporting Bharti in realizing the full potential of this world class business." US Bank giant Goldman Sachs has acted as sole financial advisor to QFE on this investment.Â
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