KKR, pension fund CPPIB eyeing exit from Indus Towers

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US private equity major KKR and top pension fund Canadian Pension Plan Investment Board (CPPIB) are currently exploring options to exit India’s largest telecom infrastructure firm Indus Towers (formerly called Bharti Infratel), multiple industry sources with knowledge of the matter told Moneycontrol.

“Both these players have been invested for a few years now and are keen to sell their existing stakes in Indus Towers via the block deal route. They are looking for a suitable opportunity,” one of the persons cited above told Moneycontrol without elaborating on the deal timelines and structure.

CPPIB currently holds a 2.15 percent stake while KKR holds a 4.85 percent stake in the firm. Based on the market cap of Indus Towers at the end of day's trade on July 8, the combined 7 percent stake is worth Rs 3,952 crore. The promoter category which includes the Bharti Group and The Vodafone Group holds a 67.49 percent stake.

In 2017, Bharti Airtel sold a 10.3 percent stake in Bharti Infratel to a consortium of investors including CPPIB and KKR. Funds managed by KKR had also previously invested in Bharti Infratel between 2008 and 2015.

Two other persons confirmed the exit plans of both the funds and one of them added that the stake held by the two investors in Indus Towers is not strategic in nature and that both were looking to monetise it and generate liquidity.

All the three persons cited above spoke to Moneycontrol on condition of anonymity.

KKR declined to comment while an email query sent to CPPIB and Indus Towers was left unanswered at the time of publishing.

Indus Towers has seen plenty of block deal action in 2022. Last week, Bharti Airtel had purchased an additional 2.06 percent stake in Indus Towers via the block deal route.

Earlier this year, the Vodafone Group had sold a 7.1 percent stake in Indus Towers; 2.4 percent through a block deal and 4.7 percent to Bharti Airtel — raising around Rs 3,831 crore. Then it pumped in Rs 3,375 crore in Vodafone Idea by subscribing to newly issued shares. The proceeds were used by Vodafone Idea to partially settle outstanding payments to Indus Towers.