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Airtel’s shares soar as Bharti Telecom says it will acquire Singtel’s stake for $1.6 billion

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  • single has entered into an agreement with airtel promoter Bharti Telecom to buy a 3.3% stake in Airtel for $1.6 billion.
  • The Singapore-based telecom giant has been an Airtel shareholder for more than two decades.
  • Airtel shares rose in early trading, as did Singtel’s in its home market, Singapore.

Bharti Telecom has entered into an agreement with Singapore-based Singtel to acquire a 3.33% stake in Airtel for $1.6 billion (approximately ₹12,800 crore), according to an exchange filing today.

Bharti Telecom is one of the promoters of Bharti Airteldirected by Sunil Mittal. However, Singtel is also a shareholder of the promoter.

Shares of Airtel rose more than 1.2% in early trading today (Aug. 25), while the benchmark Nifty50 index rose 0.4%. Singtel shares also rose nearly 2% in its home market, Singapore.

Airtel share price in FY23BSE / https://londonbusinessblog.com/ India / Bloom

“Singtel and its subsidiaries have entered into an agreement to transfer 3.33% of its shares to BTL for a total consideration of approximately SGD 2.25 billion, thereby eliminating the direct shareholding of Singtel and Bharti in Airtel by 10% and 6% respectively,” said Bharti Telecom in an exchange request.

Singtel has been an Airtel shareholder for more than two decades.

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Bharti Telecom has entered into an agreement with Singapore-based Singtel to acquire a 3.33% stake in Airtel for $1.6 billion (approximately ₹12,800 crore), according to an exchange filing today. Bharti Telecom is one of the promoters of Bharti Airtel, headed by Sunil Mittal. However, Singtel is also a shareholder of the promoter.

Singtel’s decision to wind down some of its stake in India’s second-largest telecom company is part of a pivot to refine its focus on its core businesses. The company plans to use the proceeds from this sale for 5G and other growth initiatives in its home market.

The Sunil Mittal family owns a 50.56% stake in Bharti Telecom, while Singtel owns the remainder at 49.44%. This promoter arm held a 35.85% stake in Bharti Airtel prior to the deal.

Prior to the sale, the Mittals held a 24.13% stake in Bharti Airtel, while Singtel’s stake was 31.72%.

Following the sale, Singtel’s stake in Bharti Airtel will have fallen to 29.7%, valued at just over $15.8 billion (approximately ₹1.26 lakh crore).

Once the sale is completed, the Mittal family’s stake in Airtel will be just over 25%, thanks to their stake in Bharti Telecom.

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