Singtel sells 1.6% in Airtel to Bharti telecom for Rs 7,262 crore – ET Telecom

Singapore Telecommunications (Singtel) has sold around 1.6% stake in Bharti Airtel to Bharti Telecom Ltd (BTL), a key promoter company, through a block deal on Thursday for Rs 7,262 crore.

Pastel, a Singtel affiliate, sold 94 million shares-or 1.6% of Airtel‘s equity-in the Indian telco at Rs 772.5 a piece to BTL, according to NSE block deal data.

The block deal is the second tranche of Singtel’s targeted 3.3% stake sale in Airtel. On September 7, Singtel sold around 1.76% stake in Bharti Airtel to Bharti Telecom for around Rs 7,148 crore.

Last month, Singtel had said it would sell a 3.33% stake in Airtel to BTL for $1.61-over 90 days-as it looks to boost shareholder returns and increase return on invested capital.

Singtel and Bharti Enterprises had also said they would work towards equalising their effective shareholdings in Airtel over time.

After Thursday’s block deal, promoter company BTL’s stake in Airtel has risen to over 38.76% from 37.16%. Singtel’s effective stake in Airtel, in turn, stands reduced to a shade below 29%.

Media planners said while all three telcos – Airtel, Jio and Vi – will have tactical campaigns in the festive quarter, Airtel is slated to lead the media spending in the category.

Bharti shares gained half a percent on Thursday to close at Rs 784.20 in a weak market.

Earlier, BTL had said Bharti and Singtel had decided to make directional shifts in their holdings in Airtel, which would pave the way for Airtel’s controlling company to further strengthen its shareholding in India’s second-largest telco.

The Mittals and Singtel will continue to own 50.56% and 49.44%, respectively, in BTL.

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