Bharti Airtel 'towers' up

Bharti Airtel is very much in the limelight today in early morning trades. The stock opened in the green, some Rs.7 higher and is currently up 1.5% at Rs.404 levels. Present intra day high stands at Rs.408.20 and 52-week is at Rs.419.90.

The stock is in news following its announcement yesterday that it has signed an agreement with American Tower Company (ATC) to sell around 4,800 telecom towers in Nigeria. Over the past couple of months it has been consistently selling towers – of its total of 15,000 towers in Nigeria, it first sold 3500 and then 3100 and now 4800 – leaving the company now with 3600 towers.

The company has not given any financial details of this sale but based on estimates, where valuation in Nigeria is stated to be the highest in the region at around Rs.1.35 crore each, this sale might have fetched the company some Rs.6450 crore.  This sale of towers is to bring down its debt  and focus on its core customers and business.

Bharti had entered Africa in 2010, acquiring Zain’s loss making operations for a huge $9 billion. Its African operations continue to run losses due to very high costs of operations. Its loss from Africa in current Q2FY15 was at Rs.754 crore v/s Rs.288 crore in previous Q2.