Qatar Foundation Endowment (QFE) has entered into a binding agreement with Bharti Airtel, a leading global telecommunications services provider with operations in 20 countries across Asia and Africa, to acquire five percent of the company.
The $1.26 billion investment will strengthen Bharti’s capital structure and improve flexibility for its growth strategy.
Headquartered in New Delhi, India, the company ranks amongst the top four mobile service providers globally in terms of subscribers. Bharti Airtel had over 271 million customers across its operations at the end of March 2013.
Qatar Foundation Endowment (QFE) is a long-term global investor with a broad mandate to make direct and managed investments. QFE was recently established to provide a sustainable income stream that will ultimately fund Qatar Foundation for Education, Science and Community Development operations in perpetuity.
Speaking on the agreement, Rashid Al-Naimi, Acting Chief Executive Officer, QFE, said, “We are excited to be making a significant investment in one of the leading telecommunications companies in the world. As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets. QFE looks forward to supporting Bharti in realizing the full potential of this world class business.”
Goldman Sachs acted as sole financial advisor to QFE on the investment.