Singtel to pick 7.39% stake in Bharti Telecom for $659 mn

Singtel to pick 7.39% stake in Bharti Telecom for $659 mn

PTIUpdated: Thursday, May 30, 2019, 01:15 PM IST
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New Delhi : Singapore Telecommunications Ltd (Singtel) on Thursday said it will buy 7.39 per cent stake in Bharti Telecom Ltd, the holding company of India’s largest telecom firm Bharti Airtel, for $ 659.5 million (over Rs 4,400 crore).

Singtel will acquire Temasek’s 7.39 per cent stake in Bharti Telecom and another 21 per cent stake in Thai telecom firm Intouch Holdings PCL for a total consideration of 2.47 billion Singapore dollar ($ 1.8 billion). Of this, it will pay Temasek Singapore $ 884 million ($ 659.51 million), for the stake in Bharti Telecom. Bharti Telecom holds 45.09 per cent in Mumbai-listed Bharti Airtel Ltd.

The Mittal family has 51 per cent stake in Bharti Telecom while Singtel held 39 per cent stake. Temasek held 7.39 per cent, which it is now transferring to Singtel as part of strategy to bring all telecom assets worldwide under the Singapore government entity, reports PTI.”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. The acquisitions will be settled fully in cash. Singtel will pay Temasek Thai Baht 60.83 for each share of Intouch and Rs 235.62 for each share of Bharti Telecom.

Bharti Airtel was trading 1.78 per cent higher at Rs 351.40 on BSE at 1250 hours. 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, Singtel said.   Bharti declined to comment.

“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 Singapore Dollar 1.605 billion at a price of Singapore Dollar 4.16 per new share.

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