Bharti Airtel today announced that Singapore Telecommunications, Asia’s leading communications and ICT solutions group and a long term partner of Airtel, will invest Rs. 2,649 Crores in Bharti Telecom, the promoter company of Airtel through preferential allotment of shares.
The funds raised will be used towards debt reduction. With this investment, Singtel’s total stake in Bharti Telecom will increase to 48.9% from 47.17% stake that it currently hold 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, and the increased attractiveness of the Indian telecommunications 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.”
The transaction is subject to the shareholders’ approval of Bharti Telecom.