, Singapore

Singtel monetises 1.6% of stake in Airtel Africa

The placement raised approximately $150m.

Singtel's wholly-owned subsidiary Singapore Telecom International has monetised a 1.6% stake in Airtel Africa through a market placement as part of its capital recycling strategy. It raised net proceeds of approximately $150m from the placement, which was well oversubscribed.

Airtel Africa, Africa's second-largest telecom operator, with a combined mobile customer base of more than 125 million across 14 countries, offers an integrated suite of telecommunications solutions, including mobile voice, data and mobile money services. It has been delivering strong broad-based revenue growth and good returns to shareholders.

Singtel CFO Arthur Lang said, "We are pleased with the strong interest in the placement. This monetisation underscores our approach to actively pursue asset recycling opportunities and crystallise value from our assets to fund our new growth engines. It will also enhance the liquidity of Airtel Africa shares in the market and allow for more broad-based institutional investor participation."

The realised gain on divestment of approximately $34m will be recorded in the group's retained earnings in the balance sheet. Following this transaction, Singtel will continue to hold a 21.7% effective stake in Airtel Africa, comprising a 17.8% indirect stake through its regional associate Airtel and a 3.9%direct stake.

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