Singtel dubbed reports of selling stake in Bharti Airtel as ‘market speculation’ on its intention to sell 1-2% of its stake in the Indian telecom major for around $1-2 billion.
“We would like to make patently clear that we have been strategic investors in Airtel for decades and it remains a core investment in our international portfolio. We do not comment on market speculation and abide by market disclosure rules pertaining to material transactions,” said the Singapore-based telecom firm a day after reports suggested that it is in talks with Bharti Airtel chairman Sunil Mittal to sell a part of its stake.
Singtel may sell about 2-4% equity in Bharti Airtel, reported news agency PTI quoting sources. “The discussion is going on between Singtel and Mr Mittal. Singtel is looking to sell 2-4 per cent stake in Bharti Airtel to Mr Mittal,” a source told PTI. However, it was not disclosed whether the transaction will take place in Bharti Airtel or Bharti Telecom.
Singapore Telecommunications Ltd (Singtel) and the Mittal family are shareholders in Bharti Airtel’s promoter company Bharti Telecom. Singtel’s effective stake in Bharti Airtel is 31.7% whereas it holds a 49.44% stake in Mittal family-owned firm Bharti Telecom. Bharti Telecom holds a 35.85% in Bharti Airtel.
In March this year, Singtel monetised partial stake in Airtel Africa as part of its capital recycling strategy. It raised net proceeds of approximately S$150 million from the placement which was oversubscribed.