Sunil Mittal Plans Succession and Increased Stake in Airtel Over Next Decade
Sunil Mittal to hand over Airtel reins to next generation in a decade
Business Standard
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Sunil Bharti Mittal, chairman of Bharti Enterprises, aims to increase promoter shareholding in Bharti Airtel to over 51% within a decade while preparing for succession. This includes a significant share-swap deal to enhance Airtel's stake in Airtel Africa, aiming for a controlling interest and greater income flow.
- 01Mittal plans to hand over control of Airtel to the next generation in ten years.
- 02Promoter shareholding in Airtel is targeted to exceed 51% through buybacks and dividends.
- 03Airtel's board approved a ₹28,200 crore share-swap deal to increase its stake in Airtel Africa.
- 04ICIL will acquire a 16.3% stake in Airtel Africa, raising Bharti Airtel's indirect stake to 79.04%.
- 05Mittal criticized Indian IT firms for focusing solely on dividends and buybacks instead of growth.
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Sunil Bharti Mittal, chairman of Bharti Enterprises, has expressed his intention to transfer leadership of Bharti Airtel to the next generation within the next decade. He aims to consolidate promoter shareholding under Bharti Telecom, increasing it to over 51% through strategic buybacks and dividends. During an earnings call, Mittal outlined plans for a ₹28,200 crore share-swap deal that will enhance Airtel's stake in Airtel Africa, boosting its indirect ownership to 79.04%. This deal involves the issuance of shares to Indian Continent Investment Limited (ICIL), which will acquire a 16.3% stake in Airtel Africa. Mittal emphasized the importance of returning control to Bharti Telecom, the founding promoter company, and criticized Indian IT firms for their lack of growth strategies, advocating for Airtel's focus on acquisitions and expanding its customer base to over 800 million. He reaffirmed his commitment to dividends and buybacks but insisted that Airtel would not follow the path of stagnation seen in some IT companies.
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The increase in Airtel's shareholding and strategic acquisitions could lead to enhanced revenue and shareholder rewards, impacting investors and customers positively.
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