Singtel to acquire 7.39% more stake in Bharti Telecom for $659 million

The Dollar Business Bureau

Singapore Telecommunications (Singtel) on Thursday announced its plans to increase its share in Bharti Telecom by 7.39% for $659 million (about Rs.4,400 crore).
Singtel said it will purchase the holding in Bharti Telecom from Singapore’s sovereign wealth fund Temasek to raise its holding to 46.39%.  

This deal will increase Singtel’s direct and indirect stake in Airtel from about 33% currently to over 36%. Singtel is currently the single largest shareholder in India’s telecom giant. 

After the company made its announcement, Shares of Bharti Airtel grew 2.43%, before closing at Rs. 352.40. Airtel's market capitalization, too, rose by Rs. 2,858.14 crore to Rs. 1,40,868.38 crore.

Bharti Telecom has 45.09% share in the Sunil Mittal-owned Bharti Airtel.  

“It will acquire Temasek's 7.39% stake in Bharti Telecom along with another 21% stake in Thai telecom firm Intouch Holdings PCL for a total of 2.47 billion Singapore dollar ($1.8 billion),” Singtel said in a statement. Prior to this deal, Singtel held 39% stake.  

Singtel plans to fund the transaction though short-term debt and a fresh share issued to Temasek for $1.605 billion.  

Singtel said all three transactions need to be closed simultaneously. "The acquisitions are in line with the Group's long-term strategy to increase its exposure to high-performing associates in its portfolio of leading telecom businesses in the region. Thailand and India are fundamentally attractive markets which are reaping the benefits of rapidly increasing smartphone phone.”