Singapore Telecommunications (Singtel) has sold yet another 0.8% in its associate, Airtel, for $1.5 billion.
The transaction was conducted via a private placement to institutional investors. Singtel will book a gain of $1.1 billion from the sale.
“Singtel has been working closely with Bharti Enterprises to gradually equalise our effective stake in Airtel over time,” says Arthur Lang, Singtel’s group chief financial officer. “These transactions allow us to unlock value when appropriate, yet continue to retain a significant stake in Airtel and remain invested in India's burgeoning digital economy.”
“With this transaction, our active capital management programme has generated $5.6 billion, more than half of our new mid-term asset recycling target of $9 billion,” he adds. The latest sale will give the telco the “financial flexibility to strengthen our balance sheet, fund growth opportunities in digital infrastructure and digital services while ensuring that we can continue to grow dividends on a sustainable basis,” Lang continues.
This is the fourth sale since 2022.
Following this transaction, Singtel will hold an estimated 27.5% stake in Airtel, valued at an estimated $51 billion.
