New Delhi, (IANS) Bharti Airtel on Monday announced that Singapore Telecommunications Limited would invest Rs 2,649 crore in Bharti Telecom, the promoter company of Airtel through preferential allotment of shares.
With this investment, Singtel’s total stake (along with its affiliates) in Bharti Telecom would increase to 48.90 per cent.
Singtel currently holds 47.17 per cent stake in Bharti Telecom. Bharti Enterprises continues to hold over 50 per cent stake in Bharti Telecom.
The transaction is subject to the shareholders’ approval of Bharti Telecom. The funds raised would be used towards debt reduction, the company statement said here.
“Airtel shares a nearly two decade-long relationship with Singtel, which has only become stronger over the years.
“The fresh round of investment highlights the confidence of Singtel in Airtel, and the increased attractiveness of the Indian telecom sector following the recent consolidation,” said Deven Khanna, Managing Director, Bharti Telecom.
The investment comes within 23 months of Singtel’s participation in Bharti Telecom’s Right Issue of Rs 2,500 crore, which was completed in February 2016.