Bharti Airtel promoter, Bharti Telecom will buy a 3.33 percent stake from Singtel for S$2.25 billion or about Rs. 12,895 crore in 90 days.
Bharti Group chairman, Sunil Bharti Mittal’s family, and Singtel own Bharti Telecom (BTL).
“Singtel and its affiliates have agreed to transfer 3.33 percent shares to BTL for an aggregate amount of S$2.25 billion, leaving direct shareholding of Singtel and Bharti in Airtel at 10 percent and 6 percent, respectively,” Bharti Airtel said in a regulatory filing on Thursday.
The acquisition is to be completed over 90 days.
“BTL, the promoter of Airtel, an entity held by Bharti and Singtel, has been and will continue to be the principal vehicle to hold controlling shares in Airtel,” it said.
It further said that Bharti and Singtel have agreed to work towards equalizing their stake in Airtel over some time, adding that BTL will calibrate and spread such acquisitions to maintain a comfortable level of leverage.
Bharti Enterprises and Singtel have had over 20 years of partnership. Over these years, Airtel has not only acquired a strong pan-India leadership position but has also expanded to 16 more countries in Africa and South Asia.