Singtel unit sells 0.8% stake in Bharti Airtel for about S$1.5 billion, booking estimated S$1.1 billion gain
The sale reduces Singtel’s effective stake in Bharti Airtel to 27.5% from 28.3%
[SINGAPORE] Singtel announced its indirect wholly-owned subsidiary Pastel has raised gross proceeds of about S$1.5 billion from selling a 0.8 per cent stake in its regional associate, Bharti Airtel.
In a news release on the Singapore Exchange (SGX) on Friday (Nov 7), the group announced the transaction will result in an estimated gain of S$1.1 billion.
After the completion of the sale, it reduces Singtel’s effective stake in Bharti Airtel from 28.3 per cent to 27.5 per cent. The group’s remaining stake is valued at an estimated S$51 billion.
According to a separate announcement on SGX, Singtel’s indirect wholly owned subsidiary, Pastel, sold 51.0 million shares, raising aggregate gross proceeds of approximately S$1.5 billion. Singtel noted the transaction was executed via a private placement to institutional investors, reflecting strong demand.
The pricing of 2,030 Indian Rupees per share was determined on an “arm’s length and willing-buyer willing-seller basis”, the announcement read.
Arthur Lang, Singtel’s Group Chief Financial Officer, stated that the group has been working with Bharti Enterprises to “gradually equalise” its effective stake in Airtel over time.
“These transactions allow us to unlock value when appropriate, yet continue to retain a significant stake in Airtel and remain invested in India’s burgeoning digital economy,” Lang said.
He added that the S$5.6 billion raised is more than half their new mid-term asset recycling target of S$9 billion, and provides “financial flexibility to strengthen our balance sheet, fund growth opportunities in digital infrastructure and digital services”.
This sale is part of Singtel’s ongoing capital management programme. Proceeds will also be used for capital returns, including its value realisation dividend and share buyback programmes, the release read.
