Singapore Telecommunications Limited (Singtel) has decided to sell 3.33 per cent stake in Bharti Airtel Limited to Bharti Telecom, the promoter company of Airtel, for an aggregate consideration of about $1.61 billion.
With this stake sale, Singapore Telecommunications Limited's effective holding in Bharti Airtel will come down to 29.7 per cent.
"Bharti Enterprises and Singtel have had over 20 years of solid partnership based on mutual respect and trust resulting in a rewarding outcome. Over these years, Bharti Airtel Limited (Airtel) has not only acquired a strong pan-India leadership position, but has also expanded to 16 more countries in Africa and South Asia," Bharti Airtel said in a regulatory filing to the stock exchanges on Thursday.
Throughout this period, Singtel and Bharti have participated in Rights issues, acquisition and sale of shares maintaining a healthy inter-se balance in their shareholding under the control and management of Bharti in Airtel, it said.
Bharti and Singtel have decided to make some directional shifts in their respective holdings in Airtel and have agreed that "Bharti Telecom Limited (BTL), the promoter of Airtel, an entity held by Bharti and Singtel, has been and will continue to be the principal vehicle to hold Controlling Shares in Airtel," Bharti Airtel said.
Bharti Telecom Limited will further strengthen its shareholding in Airtel. Accordingly, Singtel and its affiliates have entered into an agreement to transfer 3.33 per cent shares to BTL for an aggregate amount of approx. SGD 2.25 billion (USD 1.61 billion), leaving direct shareholding of Singtel and Bharti in Airtel at 10 per cent and 6 per cent respectively, the company said.
The acquisition is to be completed over a period of 90 days, it added.
( With inputs from ANI )
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