Singapore Telecommunications Limited, Singtel, a major Singapore-based investor in Bharti Airtel Limited, has made a strong block deal by selling a 1.2% equity stake in the company at an average price of Rs 1,820 (Indian Rupee) per share on Friday. After this sale, Singtel will hold a 28.3% stake in Airtel, generating an estimated gain of $1.4 billion.
Singtel Aiming for Sustainability
Singtel made this sale via its investment arm, Pastel. Since 2021, Singtel has been focusing on a ‘strategic reset’ policy to effectively use its capital and improve shareholder returns. This current sale by the Singapore-based telecommunication company aims to optimise the company’s portfolio and sustain the shareholders. About this sale, Singtel’s Group Chief Financial Officer, Arthur Lang, stated
"This transaction allows us to crystallise value at an attractive valuation while remaining a significant shareholder of Airtel. We are pleased to welcome new like-minded investors who share our conviction in Airtel’s strong growth potential as India pursues its vision of achieving a US$1 trillion digital economy. This will further strengthen Airtel’s shareholder base so that we can collectively support its long-term growth."
Singtel-Airtel Long-Term Strategic Alliance
In 2016, Singtel and Bharti Airtel signed a long-term strategic alliance to combine their resources into one network to provide high-speed data connectivity to 325 cities across the globe. This mega joint venture combined Singtel’s 200 Points of Presence (PoPs) in 160 cities and Airtel’s 170-plus PoPs in 165 cities across India, Africa, and the Middle East.
