Singtel sells 0.8% stake in Bharti Airtel for about $1.2 billion

More than 55 million shares of Bharti Airtel were traded through block deals, according to data from LSEG

Singapore Telecommunications (Singtel) said on Friday it had sold a 0.8 per cent stake worth S$1.5 billion ($1.16 billion) in India's Bharti Airtel, as part of the Southeast Asian telecom company's ongoing asset restructuring strategy.

 

Singtel's unit Pastel sold 51 million shares of Bharti Airtel, India's second-largest telecom operator, at ₹2,030 ($23.10) apiece, representing a discount of about 3.1 per cent to Airtel's last close on Thursday.

 

The divestment is part of Singtel's S$9 billion mid-term asset recycling programme, which is aimed at funding investments in digital infrastructure and services.

 

The telecoms company, an investor in Bharti Airtel since 2000, has been gradually reducing its holding to strengthen its balance sheet and enhance shareholder returns.

 

Singtel now holds a 27.5 per cent stake in Bharti Airtel, down from 31.4 per cent in 2022.

 

Bharti Airtel shares have more than quadrupled in value since 2019-end, underpinned by strong earnings growth and higher average revenue per user, allowing Singtel to realise gains from its long-held investment.

 

The deal, executed via a private placement to institutional investors, will bring Singtel an estimated gain of S$1.1 billion, reflecting firm demand for the Indian telecom major's shares.

 

Singtel shares rose as much as 5 per cent before trimming gains to trade up about 3 per cent at S$4.61 on Friday, and edged higher to S$4.65 after the announcement. Bharti Airtel shares were last down about 4.5 per cent.

 

More than 55 million shares of Bharti Airtel changed hands via block deals during the session, according to LSEG data.

 

Bharti Airtel did not respond to a Reuters request for comment.