Singtel sells 1.2% stake in Airtel for SGD 2 billion to optimise portfolio

Singapore Telecommunications (Singtel) announced on Friday that in a move to optimise its asset portfolio and enhance shareholder returns, it had sold approximately 1.2 per cent of its direct stake in regional associate Bharti Airtel for SGD 2.0 billion.

The transaction was completed through a private placement involving a range of institutional investors from India and overseas, including existing Airtel shareholders. Singtel stated that the offering attracted strong demand and was significantly oversubscribed, resulting in a larger transaction size and a tighter final price than initially expected. The majority of the placement was taken up by international long-only funds and domestic mutual funds.

Arthur Lang, Group Chief Financial Officer at Singtel, commented, “This deal allows us to retain a substantial stake in Airtel while realising value at an attractive valuation. As India advances towards its ambition of building a USD 1 trillion digital economy, we are pleased to welcome new investors who share our confidence in Airtel’s strong growth prospects. This will further strengthen Airtel’s shareholder base, enabling us to support its long-term development as a group.”

Lang added that the disposal reflects Singtel’s disciplined approach to capital allocation and its commitment to delivering long-term value for shareholders, “This is a core principle of our Singtel28 growth strategy, where active capital management and the financial flexibility it provides are central to funding growth initiatives while maintaining capital returns.”

Singtel remains a strategic investor in Airtel, a partnership that has spanned over two decades. With a 9.5 percent direct ownership through its subsidiary Pastel Limited, SingTel previously owned about 28.9 percent of Bharti Airtel. Following the transaction, the company retains a 28.3 per cent stake in Airtel, valued at approximately SGD 48 billion. The sale is expected to yield estimated proceeds of SGD 1.4 billion.

This latest divestment follows previous sales in 2022 and 2024, in which Singtel raised a total of SGD 3.5 billion through the sale of a 3.3 per cent stake to Bharti Telecom and a 0.8 per cent stake to GQG Partners. According to Singtel, the proceeds from these transactions have supported the Group’s investments in digital infrastructure, 5G rollout, and shareholder dividends. 

Singtel has reportedly been working to strengthen its financial position; as of 30 September 2024, its net debt stood at USD 7.8 billion. In addition, the company is exploring an asset recycling pipeline worth SGD 6 billion.

Headquartered in Singapore, the group operates as a communications provider offering television, broadband, and mobile services across Asia, Australia, and Africa.