Singtel sells 1.2% stake in Bharti Airtel via private placement for Rs 13,180 crore
Kolkata:
Singapore Telecommunications
(Singtel) raised about S$2 billion (₹13,180 crore) by selling a 1.2% direct stake in regional associate
Bharti Airtel
, through a private placement to global and Indian institutional investors, including existing shareholders of India's second-largest telco.
Singtel did not name the buyers.
According to the company, the stake sale, which will yield an estimated gain of S$1.4 billion (about ₹9,224 crore), is part of its active capital management approach to optimise asset portfolio and enhance
shareholder returns
sustainably.
Pastel Ltd, a Singtel affiliate, sold 71 million shares in Airtel at ₹1,814 apiece, raising aggregate gross proceeds of about S$2 billion. The deal price reflects around a 2.8% discount to Airtel's closing price on Thursday.
Share of Bharti Airtel closed 2.8% lower at ₹1,814.35 apiece on the BSE on Friday.
Singtel highlighted that the share sale sparked strong interest and got oversubscribed, driving both an increase in the transaction size, and tighter final pricing than the initial guidance.
'A large majority of the transaction was sold to domestic mutual funds and international long-only funds…The pricing for the sale was determined at an arm's length and willing-buyer willing-seller basis, taking into account the last closing price of
Airtel shares
before sale on BSE and NSE,' Singtel said in a statement.
After the stake sale, Singtel's effective holding in Airtel will fall to 28.3% from 29.5% previously.
Mittal Family's Holding Intact
This will comprise an 8.3% direct stake via Pastel and a 20% indirect stake through
Bharti Telecom Ltd
(BTL) — the main promoter-level controlling company of Airtel. Singtel and the Mittal family-backed Bharti Group hold 49.44% and 50.56% stakes, respectively in BTL.
However, there is no change in the Mittal family's effective holding in Airtel as it hasn't bought any additional shares from Singtel. BTL will also continue to hold 40.47% of Airtel, people aware of the matter told ET.
The Mittal family's overall stake in Airtel will remain at 22.93% — comprising a 2.47% direct stake via Indian Continent Investment Ltd (a Sunil Mittal-led promoter group entity) and a 20.46% indirect stake through BTL.
'This transaction allows us to crystallise value at an attractive valuation while remaining a significant shareholder of Airtel. We are pleased to welcome new like-minded investors who share our conviction in Airtel's strong growth potential as India pursues its vision of achieving a $1 trillion digital economy,' said Arthur Lang, Singtel Group chief financial officer. 'This will further strengthen Airtel's shareholder base so that we can collectively support its long-term growth.'
An email sent to Airtel didn't elicit a response till press time.
Last November, a top Singtel executive had said the promoters of Airtel — Singtel and the Mittal family — were preparing a plan for each to hold equal direct stakes in the telco.
Singtel has been a long-term strategic investor, and a shareholder in Airtel since 2000.
In September 2022, it had sold a 3.33% direct stake in Airtel via multiple block deals to BTL for about ₹14,500 crore. Last year, it sold another 0.8% in Airtel, through Pastel, to US investment firm GQG Partners for about ₹5,885 crore.
These deals have helped to support Singtel's 5G deployment, digital infrastructure expansion, and sustainable shareholder distributions.
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