Singtel to increase stake in Indian telco giant for $555.6m
It wants to go through preferential allotment of 85.45 million shares.
Singtel's subsidiary Singtel International Investments proposes to subscribe to new shares in Bharti Telecom through a preferential allotment worth $555.6m.
According to a press release, Bharti Telecom is the holding company of Indian telco giant Bharti Airtel (Airtel) and holds approximately 50.1% of the share capital of Airtel.
Singtel will buy 85.45 million new shares in Bharti Telecom at an issue price of $6.37 (INR310) per share. This will lift Singtel's stake to 1.7% for $555.6m.
Through this allotment, Singtel’s economic interest in Airtel will increase by 0.9ppt to 39.5%.
Airtel has been an associate of the Group since Singtel acquired a stake in 2000.