Singapore Telecommunications, Singtel has announced that it will be increasing its stake in Bharti Airtel to 32.34% which is currently 30.76% by paying around USD 302 million, as reported by Reuters.
Singtel has agreed to buy approximately 788,538 shares (3.62% of shares) of Bharti Telecom Ltd. Currently, Bharti Telecom holds approximately 43.57% of Bharti Airtel.
As per the company, the acquisition will allow SingTel to increase its effective stake in BAL (Bharti Airtel), and this is also in line with SingTel’s strategic focus on maximising the value of its existing businesses, which includes reviewing opportunities to increase shareholdings in existing associates.
This would be the second equity deal of this year for Bharti Airtel as previously in May, Qatar Foundation has also picked up 5% in the company for USD 1.26 billion. Bharti Airtel had also issued 199.9 million new shares to Qatar Foundation at INR 340 each.
Also, soon Vodafone would also require to offload its indirect 4.4% stake in Bharti Airtel which approximately worth USD 1 billion, as according to the new telecom licence rules, telecom players cannot hold any beneficial interest in competitor companies operating in the same service areas.
Day before, Singtel had reported a 7% rise in its Quarter 1 net profits.
Bharti Airtel is one of the leading global telecommunications company with its operations in 20 countries across Asia and Africa offering 2G, 3G and 4G wireless services, mobile commerce, high speed DSL broadband, etc. According to its recent Quarterly reports, in India, it has close to 191 million customers (as on June 30, 2013).
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