Singapore-based SingTel, on Thursday, said it would acquire 788,538 shares of a promoter company of Bharti Airtel in an all-cash deal worth $301 million (about Rs.1,859 crore).
Following the investment, expected to conclude by August 28, SingTel’s (Singapore Telecommunications) effective stake in Bharti Airtel will increase to 32.34 per cent from 30.76 per cent.
In a disclosure to the Singapore Exchange (SGX), SingTel said: “Its wholly-owned subsidiary, SingTel International Investments Private Ltd., has today entered into a conditional share purchase agreement with MacRitchie Investments Pte Ltd. to acquire 788,538 equity shares in the capital of Bharti Telecom Ltd. (BTL).”
BTL is a promoter company of Bharti Airtel and as on the date of this announcement, holds about 43.57 per cent of the share capital of Bharti Airtel, it added.
“The acquisition would allow SingTel to increase its effective stake in BAL, and is in line with SingTel’s strategic focus on maximising the value of its existing businesses,” the filing said. It added: “The aggregate consideration payable for the sale shares is Rs.18,592,501,189 or Singapore $383,576,342. The price per sale share is Rs.23,578.45.”
“Completion is expected to take place on August 28, 2013,” SingTel said.
On Wednesday, SingTel, Southeast Asia’s biggest telecom firm by revenue, reported a net profit of Singapore $1.01 billion ($797 million) for three months ended June, 2013, up from Singapore $945 million in the year-ago period. Apart from Bharti Airtel, it owns stakes in four other foreign mobile operators.
