New Delhi: Telecom operator Bharti Airtel has sold 10.3 percent stake in its mobile tower arm Bharti Infratel to a consortium of KKR and Canada Pension Plan Investment Board for Rs 6,193.9 crore.


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"...Successful completion of the secondary sale of over 190 million shares of its subsidiary Bharti Infratel Limited (Bharti Infratel) representing 10.3 percent to a consortium of funds advised by KKR and Canada Pension Plan Investment Board (CPPIB) for total consideration of over Rs 6,193.9 crore... Executed at a price of Rs 325 per share," Bharti Airtel said in a statement.


Bharti Airtel will use the proceeds from this sale primarily to reduce debt.


Following the closure of this transaction, Bharti Airtel's equity holding in Bharti Infratel stood at 61.7 percent, and that of KKR and CPPIB at 10.3 percent, the statement said.


"This investment by a consortium of marque long-term investors underlines confidence of the global investors in India's growth story and the government's Digital India initiative... It further reinforces the positive outlook for the telecom infrastructure sector," said Sunil Bharti Mittal, Chairman, Bharti Airtel.


"The long-term investment horizon of the investors aligns well with the capital needs and business cycles of Bharti Infratel."


This transaction makes it KKR's second investment in Bharti Infratel. Previously, the funds managed by KKR had invested in Bharti Infratel in 2008-15. Post this transaction, the stake held by KKR and CPPIB (combined) will be the single largest public shareholder block.