Singapore Telecommunications (Singtel) has sold approximately 1.2 percent of its direct stake in regional associate Bharti Airtel for SGD 2.0 billion, as part of its ongoing capital management strategy aimed at optimising its asset portfolio and enhancing shareholder returns, the company announced on Friday.
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Stake Sale Amidst Strong Investor Demand
The transaction was executed through a private placement to a mix of international and Indian institutional investors, including existing Airtel shareholders. According to Singtel, the offering drew strong interest and was significantly oversubscribed, prompting an increase in transaction size and tighter final pricing compared to initial guidance. A large majority of the placement was taken up by domestic mutual funds and international long-only funds.
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Commitment to Airtel Remains Intact
Singtel Group Chief Financial Officer Arthur Lang said, "This transaction allows us to crystalise value at an attractive valuation while remaining a significant shareholder of Airtel. We are pleased to welcome new like-minded investors who share our conviction in Airtel’s strong growth potential as India pursues its vision of achieving a USD 1 trillion digital economy. This will further strengthen Airtel's shareholder base so that we can collectively support its long-term growth.”
Lang added that the divestment reflects Singtel's disciplined approach to capital allocation and its commitment to sustainable value creation for shareholders. "This is a key tenet of our Singtel28 growth plan, where we've identified active capital management and the financial flexibility it brings, as integral to funding growth initiatives while supporting capital returns."
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Aligning with Growth Plan
Singtel remains a long-term strategic investor in Airtel, with a relationship spanning over two decades. Following the transaction, the company retains a 28.3 percent stake in Airtel, valued at approximately SGD 48 billion. The sale is expected to generate an estimated gain of SGD 1.4 billion.
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Proceeds to Support Digital Growth
This latest move follows previous divestments in 2022 and 2024, where Singtel raised a combined SGD 3.5 billion through the sale of a 3.3 percent stake to Bharti Telecom and a 0.8 percent stake to GQG Partners. Proceeds from these transactions have supported the group’s investments in 5G rollout, digital infrastructure, and shareholder distributions, according to the company.
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