Singtel to increase stake in Bharti Telecom; invest Rs 26.49 billion

Singtel's stake in Bharti Telecom to reach 48.90 per cent after this investment; funds to be used towards debt reduction

Singapore-based telecom operator Singtel will invest Rs 26.49 billion in Bharti Airtel Ltd, increasing its stake in the Indian telecom major to 48.9 per cent.

"Singapore Telecommunications Limited (Singtel) will invest Rs 26.49 billion in Bharti Telecom Limited (Bharti Telecom), the promoter company of Airtel through preferential allotment of shares," Bharti Airtel said in a statement.

The transaction is subject to the shareholders' approval of Bharti Telecom and the funds raised will be used towards debt reduction, it added.

"With this investment, Singtel's total stake (along with its affiliates) in Bharti Telecom will increase to 48.90 per cent," the statement said.

Singtel currently holds 47.17 per cent stake in Bharti Telecom while Bharti Enterprises continues to hold over 50 per cent stake in Bharti Telecom, it said.

The investment comes within 23 months of Singtel's participation in Bharti Telecom's Right Issue of Rs 25 billion, which was completed in February 2016.

"Airtel shares a nearly two-decade-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 telecoms sector following the recent consolidation," said Deven Khanna, Managing Director, Bharti Telecom.