Singtel will be investing Rs.2,649 crores in Bharti Telecom. This is second investment by Singtel within a span of 23 months…
NEW DELHI, FEBRUARY 5, 2018: Bharti Airtel Limited today announced that Singapore Telecommunications Limited (Singtel), Asia’s leading communications and ICT solutions group and a long term partner of Airtel, will invest Rs.2,649 crores in Bharti Telecom Limited , the promoter company of Airtel, through preferential allotment of shares. The transaction is subject to the shareholders’ approval of Bharti Telecom. The funds raised will be used towards debt reduction.
With this investment, Singtel’s total stake (along with its affiliates) in Bharti Telecom will increase to 48.90%. Singtel currently holds 47.17% stake in Bharti Telecom. Bharti Enterprises continues to hold over 50% stake in Bharti Telecom.
The fresh round of investment highlights the confidence of Singtel in Airtel, which is leading global telecommunications services provider with operations in 16 countries across Asia and Africa, and the increased attractiveness of the Indian telecom sector following the recent consolidation. The investment comes within 23 months of Singtel’s participation in Bharti Telecom’s Right Issue of Rs.2,500 crores, which was completed in February 2016.
Deven Khanna, Managing Director, Bharti Telecom, said, “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 Singtel in Airtel, and the increased attractiveness of the Indian telecoms sector following the recent consolidation.”
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