Kolkata: Singapore Telecommunications (Singtel) has concluded its Rs 2,649 crore investment in Bharti Telecom, taking its total stake (including affiliates) in the holding company of Bharti Airtel to 48.90% from earlier 47.17%.
“…the transaction has been concluded with the allotment of 85.45 million equity shares to Singtel International Investments Pvt Ltd, an affiliate of Singtel,” Bharti Airtel said in regulatory filings to the Bombay Stock Exchange and National Stock Exchange Tuesday.
Following the investment, Bharti Enterprises will continue to own 50.1% of Bharti Telecom.
Singtel’s economic interest in Bharti Airtel has also risen by 0.9 percentage point to 39.5% while the Indian promoter’s share stands diluted proportionately to 27.08% from 27.93% previously.
Last month, Singtel had announced plans to raise its stake in Bharti Airtel by investing Rs 2,649 crore in the telco’s holding company, Bharti Telecom, through a preferential share issue, proceeds of which would be used to cut debt.
Bharti Airtel shares were up 0.51% at Rs 422.90 on BSE in early afternoon trade.
Separately, the company informed exchanges that its board had on Monday approved the transfer of 19% equity shares of DTH arm, Bharti Telemedia, to Nettle Infrastructure Investments Ltd, a wholly-owned unit of Bharti Airtel.
“A part of the aforesaid stake shall be utilized for completion of the Bharti Telemedia stake sale to the Warburg Pincus Group,” the company said in another regulatory filing.
Last month, Bharti Airtel had said it would transfer its 25 % stake in Bharti Telemedia to wholly owned arm Nettle Infrastructure Investments.
Back in December last year, the Bharti group had announced plans to sell a fifth of its DTH arm to an affiliate of global private equity firm Warburg Pincus, for around Rs 2,258 crore ($350 million), with most of the funds being consumed by Bharti Airtel to fight mounting competition from Reliance Jio.
As per transaction details then disclosed, Bharti Airtel would sell 15% of its DTH arm to Lion Meadow Investment for Rs 1,623.76 crore, while the balance would be sold by a Bharti promoter entity which owns 5% in company.
After fund infusion from Warburg Pincus, Bharti Telemedia is slated to become the second-largest player in the industry by valuation, after Dish TV Videocon.
Source: Economic Times