Singapore Telecommunications (Singtel) has sold approximately 1.2% of its direct stake in regional associate Bharti Airtel for $2 billion, as part of its ongoing capital recycling strategy aimed at optimising its asset portfolio and boosting shareholder returns.
The transaction, conducted via a private placement to a mix of international and Indian institutional investors (including existing Airtel shareholders) was oversubscribed. The strong demand led to an increase in transaction size and tighter final pricing than initial guidance, with most of the shares going to domestic mutual funds and global long-only investors.
“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,” says Arthur Lang, Singtel’s Group chief financial officer.
He adds: “This is a key tenet of our Singtel28 growth plan, where we’ve identified active capital management and the financial flexibility it brings, as integral to funding growth initiatives while supporting capital returns.”
After this transaction, Singtel will hold a 28.3% stake in Airtel, valued at an estimated $48 billion, and generate an estimated gain of $1.4 billion.
Singtel, which has been a strategic investor in Airtel for over two decades, is working with Bharti Enterprises to equalise its effective stake in the medium term.
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This divestment is the latest in a series of Airtel stake reductions by Singtel. In 2022 and 2024, the telco raised approximately $3.5 billion from previous stake sales, including a 3.3% transfer to Bharti Telecom and a 0.8% direct stake sold to GQG Partners. This has helped to support the Group’s 5G deployment, digital infrastructure expansion and sustainable shareholder distributions
As at 1pm, shares in Singtel are trading 6 cents higher or 1.6% up at $3.81.
