PUMMY KAUL & HUMA SIDDIQUI

NEW DELHI, AUG 15: The US-based investment firm Capital Group has bought over 4.2 crore equity shares out of the 6.2 crore shares offloaded by global equity major Warburg Pincus in the telecom major Bharti Tele-Ventures (BTVL), last week. The rest of the shares have been sold to a few other FIIs.

Capital is believed to have closed the deal with Warburg at Rs 155 per share in return for 4.2 crore shares in Sunil Mittal-promoted BTVL. This, however, could not be confirmed with BTVL. It is also not known whether Capital has made any investments in India so far, or not. One of Capital Group’s largest companies is the third largest mutual fund in the US, the American Funds. It manages $500 billion.

Meanwhile, a release issued by Warburg Pincus said that its investment in the Bharti company was one of the most successful investments and expressed satisfaction about the deal. Warburg Pincus’ investment in BTVL is the firm’s largest portfolio investment in India, to date.

Since 1999 with its first investment in Bharti, Warburg Pincus has committed $290 million to the local fixed line, data, wireless and long distance service provider and watched Bharti develop into one of the premier telecommunications companies in India, Warburg Pincus said in a statement here.

„After 10 years in Asia, Bharti represents one of our most successful investments,“ Warburg Pincus co-president Charles R Kaye said, commenting on last week’s open market sale of 6.2 crore equity shares of Bharti.

While partially divesting slightly less than one-fifth of its position, Warburg Pincus continues to hold shares representing more than 15 per cent of the company.

Warburg Pincus has invested close to $1 billion in India in a range of industries.u including technology, telecommunications, health care, financial services, manufacturing and industrial sectors.