Singtel closes deal with Bharti Airtel

Singtel paid $539.4m to raise its stake in the company to 39.51%.

Singtel bought 85.45 million shares in Bharti Telecom Limited (BTL) for $6.3 (INR310) per share, bringing the total to $539.4m, through its subsidiary Singtel International Investments Private Limited (SIIPL). This is lower than the proposed price of $555.6m.

According to an announcement, BTL is a promoter company of Bharti Airtel Limited (BAL), a company whose shares are listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Ltd (NSE).

Singtel said the aggregate consideration was satisfied in full in cash in Indian Rupees on completion of the transaction. “The latest net asset value of each Subscription Share, based on BTL’s Indian GAAP standalone management accounts as of 31 December 2017 was approximately INR23.8 and accordingly, the aggregate net asset value of the Subscription Shares is approximately $40.7m (INR2b).”

Currently, BTL holds approximately 50.1% of the share capital of BAL. Prior to completion of the transaction, Singtel held an interest of approximately 47.17% in the share capital of BTL.

Following completion of the transaction, Singtel’s interest in the share capital of BTL increased from approximately 47.17% to 48.9%, and, including its direct shareholding in BAL, Singtel’s effective interest in BAL will increase from 38.64% to 39.51%.

SIIPL has increased its share capital from $1.1b to $1.7b via the allotment and issue of 539.4 million ordinary shares at$1 per share to its holding company, Singapore Telecom International Pte Ltd, a wholly-owned subsidiary of Singtel.