SingTel ups Bharti Telecom stake for $296m

According to an exchange filing, SingTel will pay INR18.59 billion ($296.4 million) for 788,538 shares at INR23,578.45 apiece, taking its stake in BTL from 36.16% to 39.78%.

The deal allows the Singapore telecom operator to increase its effective interest in Bharti Airtel (BAL) from 30.76% to 32.34% as well, since BTL holds approximately 43.57% of the share capital of BAL.

The transaction is expected to be completed on August 28. Temasek is SingTel's majority shareholder.

In May, the Qatar Foundation Endowment bought a 5% stake in BAL for INR67.9 billion.

Earlier this month the Indian government outlawed crossholdings in rival telecom companies. This might force the Vodafone Group to sell its 4.4% stake in BAL.

Under the rules, no carrier can own a direct or indirect equity stake in another operating in the same of any of India's 22 telecom service areas. Bharti and Vodafone provide services in all of them. The new licensing rules also say that no stakeholder other than the government, banks and financial institutions, which owns 10% or more in a carrier will be allowed to own a stake in any other carrier.

BAL's net income fell 46.57% year-on-year to INR42.59 billion, despite a 12.38% increase in revenue to INR803.59 billion.

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• Topics
• South Asia
• Technology
• India
• Temasek Holdings
• Singapore
• TMT
• Sovereign wealth fund