Singtel sells 1.2% stake in Bharti Airtel for $2b

The funds will support its 5G deployment.

Singtel has divested approximately 1.2% of its direct stake in regional associate Bharti Airtel for $2b.

The transaction was conducted through a private placement involving international and Indian institutional investors, including existing Airtel shareholders.

Strong demand led to the placement being oversubscribed, resulting in a larger transaction size and more favourable pricing than initially expected. The majority of shares were acquired by domestic mutual funds and international long-only funds.

Arthur Lang, Singtel’s Group Chief Financial Officer, said the deal allows the company to realise value at an attractive valuation whilst maintaining a significant stake in Airtel. He also welcomed new investors who share confidence in Airtel’s growth potential as India strives toward a US$1t digital economy.

After the sale, Singtel holds a 28.3% stake in Airtel, valued at around $48b, and expects a gain of $1.4b.

Since 2022, Singtel has raised around $3.5b through progressive sales of Airtel shares, including a 3.3% stake sale to Bharti Telecom and a 0.8% direct stake sale to GQG Partners in 2024.

The funds will help finance its 5G deployment, digital infrastructure growth, and shareholder payouts.