Airtel’s stock surges as Bharti Telecom says it will acquire Singtel’s stake for $1.6 bn

• Singtel has entered into an agreement with Airtel promoter Bharti Telecom to buy 3.3% stake in Airtel for $1.6 billion.
• The Singapore-based telecom major has been an Airtel shareholder for over two decades now.
• Airtel shares surged in early trade, as did Singtel’s in its home market, Singapore.

Bharti Telecom has entered into an agreement with Singapore-based Singtel to acquire a 3.33% stake in Airtel for $1.6 billion (approx. ₹12,800 crore), according to an exchange filing today.

Bharti Telecom is one of the promoters of Bharti Airtel, led by Sunil Mittal. However, Singtel too is a shareholder of the promoter arm.

Airtel’s shares surged over 1.2% in early trade today (August 25), while the benchmark Nifty50 index was up 0.4%. Singtel shares also rose nearly 2% in its home market, Singapore.


“Singtel and its affiliates have entered into an agreement to transfer 3.33% shares to BTL for an aggregate amount of approx SGD 2.25 billion, leaving direct shareholding of Singtel and Bharti in Airtel at 10% and 6% respectively,” Bharti Telecom said in an exchange filing.

Singtel has been an Airtel shareholder for over two decades now.


Singtel’s decision to pare some of its stake in India’s second largest telco is part of a pivot to refine its focus on its core businesses. The company intends to use the proceeds from this sale towards 5G and other growth initiatives in its home market.

The Sunil Mittal family holds a 50.56% stake in Bharti Telecom, with Singtel owning the rest 49.44%. This promoter arm held a 35.85% stake in Bharti Airtel – before the deal.

Prior to the sale, the Mittals held a 24.13% stake in Bharti Airtel, while Singtel’s stake stood at 31.72%.

After the sale, Singtel’s shareholding in Bharti Airtel will be down to 29.7%, worth a little over $15.8 billion (approx. ₹1.26 lakh crore).

Once the sale is complete, the Mittal family’s stake in Airtel will be a little over 25%, thanks to their stake in Bharti Telecom.

$BHARTIARTL.NSE Technical chart for Bharti Airtel - The stock is moving in an upward channel and moving towards resistance levels of 780. Bharti Telecom is in talks to acquire Singtel's stake for $1.6 billion and the chart setup looks ripe for the upcoming news.

— (@MarketViewByPB) August 25, 2022

SEE ALSO:

This financial metric explains how the Indian economy will take some time before it is back on track

Reliance Jio beats Airtel 5 to 1 in June subscriber additions

Jio vs Airtel: Which one will offer faster and more reliable 5G services?