Singtel Sells 0.8% Stake in Bharti Airtel for ₹5,849 Crore

Singapore-based telecommunications company Singtel has divested a 0.8% stake in Bharti Airtel, India's second-largest telecom service provider, through an open market transaction. The sale, valued at ₹5,849 crore, was executed on the National Stock Exchange (NSE) through Singtel's affiliate, Pastel Ltd.

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Prominent Buyers

The buyers of Bharti Airtel shares included NRI Rajiv Jain-backed GQG Partners, General Organization for Social Insurance, Australiansuper, Abu Dhabi Investment Authority, GSF II Goldman Sachs, and Reliance Trust Institutional Retirement Trust.

Singtel's Stake in Bharti Airtel

Prior to the transaction, Singtel entities, including Pastel Ltd and Viridian Ltd, held a combined 10.43% stake in Bharti Airtel. Bharti Group Chairman Sunil Bharti Mittal's family and Singtel are co-investors in Bharti Telecom Ltd, which currently holds a 39.57% stake in Bharti Airtel.

Transaction Details

Pastel Ltd sold 4.90 crore shares, representing 0.86% of Bharti Airtel's total shares, at an average price of ₹1,193.70 per share. This resulted in a transaction value of ₹5,849.13 crore.

Singtel's Capital Recycling Strategy

The sale of Bharti Airtel shares is part of Singtel's capital recycling efforts to unlock value from its assets. This transaction brings the total capital recycled by Singtel to SGD 8 billion since its strategic reset in 2021.

Proceeds and Future Plans

Singtel estimates a resultant gain of SGD 0.7 billion from the sale. The proceeds will be used to fund the growth of the company's data center and IT services, as well as reduce net debt. After the transaction, Singtel will retain an effective stake of 29% in Airtel, valued at an estimated SGD 33 billion.

Singtel's Commitment to Airtel

Singtel has been a strategic investor in Bharti Airtel for over 20 years and remains committed to the company's growth. Airtel is one of the world's top three mobile operators with over 500 million customers in 17 countries.

Conclusion

Singtel's sale of a 0.8% stake in Bharti Airtel reflects the company's ongoing efforts to optimize its portfolio and unlock value for shareholders. The transaction further strengthens Singtel's financial position and supports its strategic growth initiatives.