Singapore’s largest mobile network operator Singtel has invested Rs 2,649 crore in Bharti Telecom Ltd. boosting its stakes by 48.9 percent. Singaporean Telecommunications has over 4.1 million subscribers and through subsidiaries, has a combined mobile subscriber base of 640 million customers at the end of financial year 2017.
“Airtel Limited…announced that Singapore Telecommunications Limited (Singtel)… will invest Rs2,649 crore in Bharti Telecom Limited (Bharti Telecom), the promoter company of Airtel through preferential allotment of shares,” Bharti Airtel said in a statement.
“Singtel International Investments will be allotted up to 85,450,000 new equity shares in Bharti Telecom at an issue price of INR310 per equity share,” Singtel said in a statement Monday.
Through its wholly owned subsidiary, Singtel’s total stakes in Bharti Airtel will be up to 48.9 percent from earlier 47.17 percent. This investment will consequently increase its economic interest in Bharti Airtel by 0.9% point to 39.5%.
However, the transaction is still subjected to Bharti Airtel share holders’ approval, which is expected by March 2018. Even after this transaction, Bharti Enterprises will hold over 50pc of the stakes.
“Airtel shares a nearly two-decade-long relationship with Singtel, which has only become stronger over the years. The fresh round of investment highlights the confidence of Singtel in Airtel, and the increased attractiveness of the Indian telecoms sector following the recent consolidation,” said Deven Khanna, managing director, Bharti Telecom.
The investment comes within 23 months of Singtel’s participation in Bharti Telecom’s right issue of Rs. 2500 crores, which was completed in February 2016.