SingTel increases stake in Indian telecom group Airtel

Singapore Telecommunications (Sing Tel) has bought additional 1.52 percent stake in Indian telecom major Bharti Airtel and will pay up to 30.084 billion rupees (about 600 million U.S. dollars) in three installments ranging over 18 months, said Sing Tel on Monday.

In a notice to Singapore Stock Exchange, Sing Tel said that it has entered into a conditional share purchase agreement with Bharti Group entity to buy an additional 7,30,000 issued shares in Bharti Telecom, a promoter company of Bharti Airtel.

"The acquisition is in line with Sing Tel's strategic focus on maximizing the value of its existing businesses," the company said.

Sing Tel's wholly-owned subsidiary Pastel will pay between 18.073 billion rupees depending upon prevailing market prices for Airtel shares.

When contacted, Bharti spokesperson confirmed the deal.

Bharti Airtel's shares have been hammered at the Bombay Stock Exchange due to increased competition and pressure on its bottom line, as it touched its 52-week low on Oct. 30 at 290.30 rupees a share of five rupees face value.

Pastel will pay an initial amount of 2.420 billion rupees and on the completion of 365 days a second payment equal to 15.653 million will be made.

Bharti Telecom is a promoter company of Bharti Airtel Limited.

As a result of the acquisition, Sing Tel's effective interest in Bharti Telecom will increase from 32.81 percent to 36.16 percent and its effective interest in Bharti Airtel from 30.43 percent to 31.95 percent.

Source: Xinhua