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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

Press Trust of India  |  New Delhi 

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

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

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

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

currently holds 47.17 per cent stake in Bharti Telecom while 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 in Airtel, and the increased attractiveness of the Indian telecoms sector following the recent consolidation," said Deven Khanna, Managing Director, Bharti Telecom.

First Published: Mon, February 05 2018. 08:44 IST