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    Vodafone and Airtel may sell their stake in the merged tower firm

    Vodafone and Airtel may sell their stake in the merged tower firm

    Vodafone and Airtel may sell their stake in the merged tower firm
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    By CNBC-TV18  IST (Published)

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    Analysts have claimed that global investors such as KKR, Providence, Brookfield and American Tower Corp may buy stake in the company were Vodafone and Bharti Airtel reportedly control two thirds of the stake.

    Vodafone and Bharti Airtel may look to sell a portion of their stake in the company created by their merger, reported The Economic Times.
    As per the report, analysts said global investors such as KKR, Providence, Brookfield and American Tower Corp may buy stake in the company where Vodafone and Bharti Airtel reportedly control two thirds of the stake.
    “We do not believe either Vodafone or Bharti Airtel are long-term holders of the stock and would not be surprised to see a ‘block sale’ of this combined controlling interest to another party, once approvals for the Indus-Bharti Infratel merger have been gained,” brokerage Sanford C Bernstein was quoted as saying in the report.
    While no response has come from Vodafone or Airtel, many believe that a sellout may not be a bad option.
    Both firms, who are trying to take on the might of Jio, are facing high debts, the report said.
    “We see both Bharti and Vodafone bringing down their (respective) shareholdings meaningfully, but not down to zero, post-closure of the Indus-Infratel merger, and would expect them to (jointly) hold 25-30% at least,” Rajiv Sharma, HSBC director and telecoms analyst, was quoted as saying in the report.
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