Singtel to invest Rs 2649cr in Bharti Telecom

By : |February 6, 2018 0

Singapore Telecommunications Limited (Singtel) announced that it will invest Rs 2649 crore in Bharti Telecom Limited, the promoter company of Airtel. The transaction is subject to the Bharti Telecom shareholders’ approval. The transaction comes within 23 months of Singtel’s participation in Bharti Telecom’s Right Issue of Rs 2,500 crore, which was completed in February 2016.

With this investment, Singtel’s total stake (along with its affiliates) in Bharti Telecom will increase to 48.90 percent. Singtel currently holds 47.17 percent stake in Bharti Telecom. Bharti Enterprises continues to hold over 50 percent stake in Bharti Telecom.

Bharti Telecom said the funds will be used for debt reduction. Deven Khanna, Managing Director, Bharti Telecom said, “Airtel shares a nearly two-decade-longe-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 telecom sector following the recent consolidation.”

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Arthur Lang, CEO at Singtel said, “While there are currently headwinds in India, we take a long-term view of our investment in Airtel which continues to be a strong market leader in a region with rapidly increasing smartphone penetration and mobile data adoption.”

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