Bharti Telecom to buy 3.33% Airtel stake from Singtel for Rs 12,895 crore – Times of India

New Delhi: Bharti airtel promoter Bharti Telecom The telecom operator on Thursday said it will buy a 3.33 per cent Airtel stake from Singtel for Singapore $2.25 billion or about Rs 12,895 crore in 90 days’ time.
Bharti Group President Sunil Bharti MittalKa family and Singtel are co-investors in Bharti Telecom (BTL).
Singtel said in a statement that following the transaction, singtel group Bharti Airtel is expected to hold an effective stake of 29.7 per cent, which is estimated to be worth SGD 22 billion (around Rs 1.26 lakh crore).
“Following this mutual transaction, Bharti Telecom will continue to be the dominant vehicle holding controlling stake in Airtel. Bharti Enterprises and Singtel will work towards equalizing their dominant stake in Airtel over time,” Mittal said.
The share purchase is expected to be completed within a period of 90 days.
Singtel currently holds 50.56 per cent in Bharti Telecom and the Mittal family holds 49.44 per cent.
Bharti Telecom currently holds 35.85 per cent stake in Bharti Airtel, the country’s second largest telecom service provider.
“Singtel and its affiliates have entered into an agreement to transfer approximately 3.33 per cent of the shares to BTL for a total amount of approximately Singapore Dollars 2.25 billion (SGD), making Singtel and Bharti direct stake in Airtel approximately 10 per cent and 6 per cent each. percent respectively,” Bharti Airtel said in a regulatory filing on Thursday.
“Bharti and Singtel have agreed to work towards equalizing their stake in Airtel,” the filing said.
Singtel also has plans for a partial disinvestment of Airtel Africa.
The deal is expected to result in an estimated net profit of SGD 0.6 billion from the disinvestment of Singtel, approximately Rs 3,439 crore.
As long-term strategic investors and partners, the value of Singtel’s stake in regional affiliates has grown significantly over the years, but has not been properly reflected in the company’s share price, said Arthur Lang, Singtel’s chief financial officer.
“The sale in Airtel will be our first and will attempt to bridge this gap by highlighting the larger value of our stake in Airtel. It is also part of our capital management approach to take monetization opportunities that allow us to increase our return on invested capital. and increase total shareholders’ returns,” Lang said.
Singtel said the transaction will follow a number of capital management initiatives to rebalance and optimize Singtel’s associate portfolio, including an increase in Intouch Holdings, the parent company of Singtel’s regional affiliate AIS, and the partial disinvestment of Airtel Africa.
Singtel plans to invest SGD 2.25 billion from this transaction in 5G services and growth initiatives over the next few years, Lang said.
Bharti Airtel has reported a more than five-fold jump in its consolidated profit at Rs 1,607 crore for the quarter ended June 2022, mainly on account of hike in tariffs. The company had made a profit of Rs 283.5 crore in the same period a year ago.
Bharti Airtel’s consolidated revenue from operations grew nearly 22 per cent to Rs 32,805 crore during the reported quarter, from Rs 26,854 crore earlier.
Bharti Airtel’s total subscriber base grew 4.7 per cent year-on-year to 49.69 crore, with 362.4 million subscribers in India.
Shares of Bharti Airtel were trading at Rs 742.10 on BSE, up 0.43 per cent over the previous close.