New Delhi: Singtel on Friday said it has sold about 0.8 per cent stake in Bharti Airtel for Rs 10,353 crore (SGD 1.5 billion) as it continues to proactively optimise its portfolio through asset recycling.
Following the stake sale, Singtel will hold a 27.5 per cent stake in Airtel, valued at an estimated SGD 51 billion (around Rs 3.46 lakh crore). The transaction was executed via a private placement to institutional investors, reflecting strong demand and market confidence in Airtel. The resultant gain from the sale is estimated to be SGD 1.1 billion, Singtel - Southeast Asia’s largest telecoms provider, said in a regulatory filing on Singapore Exchange (SGX).
“Singtel has sold approximately 0.8 per cent of its direct stake in regional associate Airtel today, unlocking SGD 1.5 billion as it continues to proactively optimise its portfolio through asset recycling,” it added. Singtel’s Group Chief Financial Officer, Arthur Lang, said, “Singtel has been working closely with Bharti Enterprises to gradually equalise our 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”.
He added that with this transaction, our active capital management programme has generated SGD 5.6 billion, more than half of our new mid-term asset recycling target of SGD 9 billion.
“This gives us the financial flexibility to strengthen our balance sheet, fund growth opportunities in digital infrastructure and digital services while ensuring that we can continue to grow dividends on a sustainable basis,” Lang said. PTI