Singapore Telecommunications (Singtel) has divested about 0.8% of its shares in Bharti Airtel for roughly $1.5 billion ($1.16 billion). The sale of 51 million shares of India’s second-largest telecom operator at ₹2,030 ($23.10) per share — was conducted by Pastel Ltd. a subsidiary of Singtel. The stock was sold at a price that was about 3.1% lower than Airtel’s previous close.
The divestment is in line with Singtel's S$9 billion mid-term asset recycling programme, which is aimed at releasing capital for investments in digital infrastructure, data centers, and next-generation connectivity services. The sale will generate a one-off gain of around S$1.1 billion, reflecting strong investor confidence and demand for Bharti Airtel’s stock.
After the initial investment in Bharti Airtel back in 2000, Singtel has been gradually reducing its stake from 31.4% in 2022 to 27.5% at present, in a bid to optimize its portfolio, strengthen its balance sheet and increase shareholder returns.
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Bharti Airtel shares have gone up four times since 2019, driven by the strong earnings growth, higher average revenue per user (ARPU), and rapid expansion of 4G and 5G networks. The private placement was successfully completed with more than 55 million shares being traded in block deals, as per LSEG data.
After the announcement, Singtel’s shares were almost 5% higher before it finally closed 3% up at S$4.61, indicating that the market welcomed the transaction and investor sentiment towards the telecom group’s transformation strategy remains positive.
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