Indian telecom Bharti Airtel has agreed to sell a 5 per cent stake to the Qatar Foundation Endowment (QFE), as it looks for capital to boost its growth after being dragged down by losses from its African operations.
Reuters reports the deal is the first major investment from Qatar in India, costing US$1.26 billion.
Airtel, which has operations in 20 countries across Africa and Asia and has around 260 million customers, has seen profits fall for the last three years, as a result of competition in India and continuing losses in Africa.
The company is US$11.7 billion in debt, more than twice its operating profits. The company recently raised US$1.5 billion in overseas bonds.
The QFE is an investment vehicle of the Qatar Foundation, controlled by the second wife of the country’s emir. A source told Reuters it planned to be an active investor and would take a seat on the board.
“QFE is in for the long-term,” the source said.
