Bharti Airtel might sell stake to repay loans (India)

www.WirelessFederation.com/news: Fresh shares might be issued by Indian telco Bharti Airtel or it might divest its holdings in telecommunication infrastructure companies to reduce the burden of debt it must have to fund its acquisition of most of the African operations of Zain.

Medium-term debt, loans with a maturity period between one and ten years will fund the purchase and the money generated from operations as well as a likely equity issue will be used to repay the debt. A final deal is expected to be completed by end-April or mid-May.

According to Akhil Gupta, group deputy CEO and MD of Bharti Enterprises, the company will use a combination of free cash flow and equity to repay debt and there is a possibility to raise more equity at Airtel or Bharti Infratel level, but it has not taken any decision at this point. The company is expected to improve both revenue market share and EBITDA margins within a year or so of the takeover.