SingTel to up stake in Bharti Airtel to 31.95 per cent
31 Oct 2009
Singapore Telecommunications has agreed to increase its effective stake in Indian mobile phone operator Bharti Airtel to 31.95 per cent from the current 30.43 per cent, the company said in a release.
Under the agreement, SingTel will pick up an additional 730,000 shares in Bharti Telecom, for an estimated payment of between Rs1,870.3 crore and Rs3,008.4 crore, the firm said.
The price difference is on account of the payment schedule being spread over more than a year after the agreement takes effect from 12 November, it added.
Bharti Telecom holds a stake of around 45.3 per cent in Bharti Airtel.
On Friday, Bharti Airtel announced a somewhat dismal outlook due to a price war after reporting its slowest pace of profit growth in at least six years. Bharti shares tumbled nearly 7 per cent on the news.
SingTel will increase its stake as part of its strategy to maximise the value of its existing business.
Following the acquisition, SingTel's effective interest in Bharti Telecom will increase to 36.16 per cent from 32.81 per cent and its effective interest in Bharti Airtel will rise to 31.95 per cent.