Bharti Telecom Limited (BTL), the promoter of Airtel and a joint venture between Bharti Enterprises and Singapore-based Singtel, will further strengthen its shareholding in telecom major Bharti Airtel by acquiring a 3.33% stake from Singtel and its affiliates for about SGD 2.25 billion ($1.61 billion or ₹12,895 crore). After this stake purchase, the direct shareholding of Singtel and the Bharti family in Airtel will stand at 10% and 6%, respectively.

Bharti Telecom (BTL) is jointly owned by the Bharti family and Singtel.

After this transaction, the Singtel Group will own an effective stake of 29.7%, which is estimated to be worth S$22 billion, from 31.4% earlier in Airtel. This comprises a 19.2% indirect stake through Bharti Telecom and a 10.5% direct stake.

Both the companies have decided to work towards equalising their stake in Airtel over a period of time, says an exchange filing by Bharti Airtel, adding that BTL will calibrate and spread such acquisitions to maintain a comfortable level of leverage. The stake sale will be executed anytime before November 23, 2022.

"Accordingly, Singtel and its affiliates have entered into an agreement to transfer 3.33% shares to BTL for an aggregate amount of approx. SGD 2.25 billion, leaving direct shareholding of Singtel and Bharti in Airtel at 10% and 6%, respectively. The acquisition is to be completed over a period of 90 days," says the company.

Bharti Enterprises chairman Sunil Mittal says after this inter-se transaction, Bharti Telecom will remain the principal vehicle to hold controlling shares in Airtel. "Bharti Enterprises and Singtel have agreed to work towards equalising their effective stake in Airtel over time,” he adds.

For Singtel, the deal will unlock approximately S$2.25 billion as part of the Singtel Group’s capital recycling strategy. Singtel is Asia's leading communications tech major that has a presence in Asia, Australia and Africa and reaches mobile customers in 21 countries.

Singtel stake in Bharti Telecom

Bharti Telecom to buy 3.3% stake in Airtel from Singtel for ₹12,895 cr