Singtel has sold about 1.2% of its shares in Bharti Airtel for S$2 billion. The company said that the move was needed to optimize its asset portfolio and maintain shareholder returns.
The firm has been an active investor in Airtel for more than two decades. Its selling of the stakes in the top Indian telco lowers its stake in the Indian telecom operator to 28.3 %, which is valued at s$48 billion.
About the move, Singtel said, “part of its active capital management approach to optimize its asset portfolio and drive shareholder returns sustainably.” The company drew in about s$1.4 billion from the transaction, which was carried out on the block deal windows of the National Stock Exchange.
“This transaction allows us to crystallize value at an attractive valuation while remaining a significant shareholder of Airtel,” Arthur Lang, Singtel’s Group Chief Financial Officer, said.
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Singtel transacts shares in Airtel
Lang continued that selling 1.2% of stakes in Airtel helps strengthen the telco’s growth in the long run. He said that the divestment of the stake was part of its active capital management strategy.
“The divestment underscores Singtel’s commitment to disciplined capital allocation and sustained value realization for shareholders,” he added. It added financial flexibility to Singtel and was integral to funding its growth initiatives while supporting capital returns. Presently, Singtel still holds a 49.44% stake in Bharti Telecom, which takes care of transactions of Airtel, while Bharti Group, backed by the Mittal family, owns 50.56%.