Temasek part-exits Bharti Infratel : Report

Singapore wealth fund Temasek Holding has part-exited Bharti Infratel, the towers and other related infrastructure arm of Bharti Airtel, India’s largest mobile phone company, a report said.

The fund had invested around $500 million in the tower unit of Bharti Airtel in 2007, and was part of the consortium that had jointly bought 14% stake in Infratel for about $1.25 billion. The other investors were, Goldman Sachs Group Inc, the Investment Corp of Dubai, Macquarie Group Ltd, Citigroup, AIF Capital, and India Equity Partners.

A report in online portal VCCircle said Temasek sold shares of Bharti Infratel through an open market transaction, adding that this was Temasek’s second part-exit from Bharti Infratel after having selling some shares during the IPO two years ago.

“It has pulled out around $90 million, making gross internal rate of return (IRR) of a little over 4 % in rupee terms on its nearly seven-year-old investment last quarter. In dollar terms its part-exit has been at par, it is estimated,” the report added.

Even after its part-exit, the Singapore fund continues to hold a little over 2% equity stake, valued at around $200 million, in Bharti Infratel.

Prior to this Temasek had made a part exit in 2012 during Infratel’s listing. At that time, an arm of the Singapore wealth fund – Compassvale Investments – held about 5.17% in Bharti’s tower arm. Post the listing, which gave it a part-exit, its stake had come down to 3.18%.

Temasek is learnt to made this partial exit, where it had got $24 million, at a 25% cut on its US dollar investment.

KKR Towers Company, which held 2.59% prior to the IPO and 2.39% after the float, along with Millenium Mauritius and AIF Capital Telecom Infrastructure had also made part exits, while GS Strategic Investments, an arm of Goldman Sachs, which had held 1.03%, hedge fund Eton Park’s Anadale Ltd, which owned 1.03% and a unit of Japan’s Nomura that held 0.52% had made complete exits.

The Singapore Fund had recently invested $82 million for an undisclosed stake in Devyani International, the Indian operator of KFC, Pizza Hut and Costa Coffee chains.About a fifth of this investment was used to buyout ICICI Venture’s stake in Devyani. The restaurant operator has more than 300 outlets across India, Nepal and Nigeria.

Temasek Holdings along with L Capital and International Finance Corp (IFC) are in talks to pick up about 30% stake in India’s Aditya Birla Group for $400-500 million.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.