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SingTel to raise effective stake in Airtel to 32.34 percent

SingTel to raise effective stake in Airtel to 32.34 percent

By Press Trust of India | Updated: 16 August 2013 12:05 IST

Singapore-based SingTel Thursday said it will acquire 788,538 shares of a promoter company of India's largest private telecom operator Bharti Airtel in an all-cash deal worth USD 301 million (about Rs. 1,859 crore).

Following the investment, expected to conclude by August 28, SingTel's (Singapore Telecommunications Ltd) effective stake in Bharti Airtel will increase from 30.76 percent to 32.34 percent.

In a disclosure to the Singapore Exchange (SGX), SingTel said: "Its wholly-owned subsidiary, SingTel International Investments Private Ltd has Thursday entered into a conditional share purchase agreement with MacRitchie Investments Pte Ltd to acquire 788,538 equity shares in the capital of Bharti Telecom Limited (BTL)."

BTL is a promoter company of Bharti Airtel Ltd and as on the date of this announcement, holds about 43.57 percent of the share capital of Bharti Airtel, it added.

"The acquisition would allow SingTel to increase its effective stake in BAL, and is in line with SingTel's strategic focus on maximising the value of its existing businesses," the filing said.

It added "The aggregate consideration payable for the sale shares is Rs. 18,592,501,189 or Singapore Dollars 383,576,342. The price per sale share is Rs. 23,578.45."

"Completion is expected to take place on 28 August 2013," SingTel said.

Wednesday, SingTel, Southeast Asia's biggest telecom firm by revenue, reported a net profit of Singapore Dollars 1.01 billion (USD 797 million) for three months ended June 2013, up from Singapore Dollars 945 million in the year-ago period.

Apart from Bharti Airtel, it owns stakes in four other foreign mobile operators Indonesia's Telkomsel, Thailand's Advanced Info Service, the Philippines' Globe Telecom and Pacific Bangladesh Telecom.

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