Bharti Airtel looking to sell 25 % in its DTH TV arm
08 Mar 2013
Bharti Airtel Ltd is looking to sell up to 25 per cent of its loss-making satellite TV or direct-to-home (DTH) services arm and is in talks with several potential buyers, according to several media reports.
Bharti Airtel, India's top telecommunications carrier, is looking at a valuation of a little over $1 billion for the unit that had 7.9 million digital television customers as of December, according to the reports which the company has refused to comment upon.
United States-based Liberty Global Inc and a couple of private equity investors are among companies Bharti Airtel is in talks with, said one report.
Direct-to-home television broadcast services in India have been gaining momentum due to growing spending power in Asia's third-largest economy and also helped by a government move to digitise the cable network.
While bankers have not been hired, Bharti Airtel has approached some interested parties and received some presentations.
The digital TV business of the company posted sales of Rs428 crore for the quarter ended December, accounting for just 3 per cent of the company's total revenue. December quarter revenue rose 29 per cent from a year earlier. Third quarter operating margin was at 3.4 per cent.
