Private Equity Invests in Indian Towers Operator

Private equity group, Kohlberg Kravis Roberts (KKR) is investing US$250 million in India's Bharti Infratel, the wholly owned towers subsidiary of Bharti Airtel. The investment will be made by KKRÃ's Asia dedicated private equity fund and its global private equity fund.

This is in addition to the investment of US$1 billion in Bharti Infratel by investors Temasek Holdings, The Investment Corporation of Dubai (ICD), Goldman Sachs, Macquarie, AIF Capital, Citigroup & India Equity Partners (IEP) in December 2007.

The enterprise valuation of Bharti Infratel will be in the range of US$10 to 12.5 Billion with the final valuation to be determined on the basis of Bharti InfratelÃ's actual operating performance in FY 2008-09.

Bharti Infratel owns over 20,000 sites and holds an approximately 42% stake in Indus Towers, the recently announced joint venture between Bharti, Vodafone and Idea, which has over 70,000 sites. Bharti Infratel and Indus Towers will provide passive infrastructure services to all wireless telecom operators in India on a non-discriminatory basis.

Posted to the site on 6th February 2008