Singtel to invest Rs 2,649 cr in Bharti Telecom through preferential allotment of shares
Bharti Airtel on Monday announced that Singapore Telecommunications Limited would invest Rs 2,649 crore in Bharti Telecom, the promoter company of Airtel through preferential allotment of shares
New Delhi: Bharti Airtel on Monday announced that Singapore Telecommunications Limited would invest Rs 2,649 crore in Bharti Telecom, the promoter company of Airtel through preferential allotment of shares.
With this investment, Singtel's total stake (along with its affiliates) in Bharti Telecom would increase to 48.90 percent.
Singtel currently holds 47.17 percent stake in Bharti Telecom. Bharti Enterprises continues to hold over 50 percent stake in Bharti Telecom.
The transaction is subject to the shareholders' approval of Bharti Telecom. The funds raised would be used towards debt reduction, the company statement said here.
"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 telecom sector following the recent consolidation," said Deven Khanna, Managing Director, Bharti Telecom.
The investment comes within 23 months of Singtel's participation in Bharti Telecom's Right Issue of Rs 2,500 crore, which was completed in February 2016.
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Singtel has built a portfolio of stakes in regional mobile associates as it hunts for growth outside its small and mature home market of Singapore