Singtel to boost its stakes in Intouch and Bharti Telecom for $2.47b

It is expanding its operations in Asia and Africa.

Singapore Telecommunications Limited (Singtel) is expanding its stakes in Intouch Holdings Public Company Limited (Intouch) and Bharti Telecom Limited (Bharti Telecom) in a bid to widen its exposure in high-performing markets in Asia and Africa.

In a press release, Singtel announced it entered into conditional share purchase agreements with Temasek to take additional 21% of Intouch and another 7.39% of Bharti Telecom for a total of $2.47 billion cash. Singtel first acquired stakes in these companies in 1999 and 2000 respectively.

Intouch is the biggest shareholder in Advanced Info Services Public Limited (AIS), the largest mobile operator in Thailand. Bharti Telecom, meanwhile, is the holding company of India’s biggest telecommunications company, Bharti Airtel Limited (Airtel), that operates in 18 countries in South Asia and Africa. The two market leaders have a combined mobile customer base of more than 380 million across Asia and Africa.

“Thailand and India are fundamentally attractive markets which are reaping the benefits of rapidly increasing smartphone penetration and mobile data adoption by a growing middle class. AIS and Airtel have also built for the future, securing significant spectrum for the long term and investing extensively in 3G and 4G networks and services,” Singtel explained.

Singtel said it will pay Temasek THB60.83 for each share of Intouch and INR235.62 for each share of Bharti Telecom. The deal is expected to be completed by December this year and will be paid through internal cash, short-term debt and proceeds from a share placement of 386 million new Singtel shares to Temasek totalling S$1.605 billion at a price of S$4.16 per new share. The acquisitions and share placement are interdependent and have to close at the same time.