Singapore's Singtel Sells 1.2% Stake In Bharti Airtel For $1.54 Bln

(RTTNews) - Singapore Telecommunications Limited or Singtel announced Friday that it has sold around 1.2 percent of its direct stake in regional associate Bharti Airtel Ltd., affiliated to Bharti Enterprises, for S$2.0 billion or about $1.54 billion.

Following the deal, Singtel will now hold 28.3 percent stake in Airtel, valued at an estimated S$48 billion, and generate an estimated gain of S$1.4 billion.

Singtel, which has been as long-term strategic investor in Airtel for over 20 years, now said it has been working with Bharti to equalise its effective stake in Airtel in the medium term.

In 2022 and 2024, the company raised a total of around S$3.5 billion from the progressive sale of Airtel shares, comprising a 3.3 percent stake to Bharti Telecom and 0.8 percent direct stake to GQG Partners, respectively. The sale has helped to support its 5G deployment and digital infrastructure expansion.

The company said the latest deal is part of its active capital management approach to optimise its asset portfolio and drive shareholder returns sustainably.

The sale was executed through a private placement to international and Indian institutional investors, including existing shareholders of Airtel. A large majority of the transaction was sold to domestic mutual funds and international long-only funds.

Singtel Group Chief Financial Officer, Arthur Lang, said, "This transaction allows us to crystalise value at an attractive valuation while remaining a significant shareholder of Airtel. We are pleased to welcome new like-minded investors who share our conviction in Airtel's strong growth potential as India pursues its vision of achieving a US$1 trillion digital economy. … This is a key tenet of our Singtel28 growth plan, where we've identified active capital management and the financial flexibility it brings, as integral to funding growth initiatives while supporting capital returns."

In Singapore, Singtel shares were trading at S$3.7900, up 1.07 percent.

On the NSE in India, Bharti Airtel Ltd. shares were losing around 2.7 percent to trade at 1,817.30 Indian Rupees.