Shares of Bharti Airtel rose after reports that Singapore Telecommunications (Singtel) agreed to buy stake in Bharti Telecom and also a stake in Intouch Holdings. Bharti Telecom is the holding company of Bharti Airtel.
"Singtel today entered into conditional share purchase agreements with Temasek to acquire 21 per cent of Intouch Holdings Public Company Ltd (Intouch) and 7.39 per cent of Bharti Telecom Ltd (Bharti Telecom) for a total consideration of Singapore Dollar 2.47 billion," Singtel said in a statement.
This transaction will be funded through internal cash, short-term debt and proceeds from a share placement of 386 million new Singtel shares to Temasek totalling $1.605 billion at a price of $4.16 per new share.
The company said that 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. The acquisitions will be settled fully in cash.
Singtel will pay Temasek THB60.83 for each share of Intouch and INR235.62 for each share of Bharti Telecom.
The transaction is subject to the fulfilment of certain conditions precedent, including shareholder and relevant regulatory approvals, and is expected to be completed by December 2016.
Shares of the Bharti Airtel were seen trading at Rs 351, higher by 1.78 per cent on BSE at 2.14 pm IST. It touched an intra-day high of Rs 352 during trade.