Singtel's Strategic Asset Management: Bharti Airtel Stake Sale

Singtel has divested 1.2% of its stake in Bharti Airtel for S$2 billion. The sale, through a private placement to international and Indian investors, is part of Singtel's strategy to optimize its asset portfolio. The transaction was notably oversubscribed, indicating strong investor interest.

Singtel announced on Friday the sale of approximately 1.2% of its direct stake in Bharti Airtel, amounting to S$2 billion, or roughly USD 1.5 billion. This move aligns with Singtel's ongoing strategy to actively manage its capital and optimize its asset portfolio to sustainably enhance shareholder returns.

The transaction was conducted via a private placement to a mix of international and Indian institutional investors, attracting significant interest from both existing Airtel shareholders and new investors. The strong demand led to an increase in the transaction size and more competitive pricing than originally anticipated.

Primarily sold to domestic mutual funds and international long-only funds, the transaction leaves Singtel with a 28.3% stake in Airtel, worth approximately S$48 billion. This sale is viewed as part of an ongoing effort by Singtel, a long-term strategic investor in Airtel, to equalize its effective stake with Bharti Enterprises.

(With inputs from agencies.)