Key Points:
- Singtel Bharti Airtel stake sale involves a 0.8% divestment worth $1.16 billion to fund new digital investments.
- Singtel’s stake drops to 27.5%, generating about S$1.1 billion in profit.
- The move supports its asset recycling plan focused on 5G and digital growth.
Singapore Telecommunications (Singtel) has sold a 0.8% stake in India’s Bharti Airtel for about S$1.5 billion ($1.16 billion), the company said on Nov. 7. The Singtel Bharti Airtel stake sale is part of its broader asset restructuring strategy aimed at strengthening finances and supporting new digital investments.
Singtel’s unit, Pastel, sold 51 million shares of Bharti Airtel—India’s second-largest telecom operator—at 2,030 rupees ($23.10) per share. The price represented a 3.1% discount to Airtel’s closing price on Thursday.
The sale is part of Singtel’s S$9 billion mid-term asset recycling program, which focuses on funding digital infrastructure and services. The initiative allows the telecom group to redirect capital from mature holdings to higher-growth opportunities across Asia.
Part of asset recycling plan
Singtel has been a long-term investor in Bharti Airtel since 2000. Over the past few years, the Singapore-based telecom has gradually reduced its ownership to improve balance sheet flexibility and boost shareholder returns.
Following the latest transaction under the Singtel Bharti Airtel stake sale, Singtel’s stake in Airtel has decreased to 27.5%, down from 31.4% in 2022. Despite the reduced shareholding, Singtel remains one of the largest foreign investors in the Indian telecom firm.
Singtel said the sale will generate an estimated S$1.1 billion in profit, reflecting continued investor confidence in Airtel’s growth outlook. The transaction was executed through a private placement to institutional investors, indicating strong market demand for Airtel shares.
Stake drops to 27.5 percent
Bharti Airtel’s stock has surged in recent years, more than quadrupling in value since the end of 2019. The gains have been driven by robust earnings growth and a steady rise in average revenue per user (ARPU), as the company strengthened its position in India’s competitive telecom market.
The recent Singtel Bharti Airtel stake sale allowed Singtel to capitalize on those long-term gains while maintaining a significant stake. Market analysts view such divestments as a way for large telecom groups to free up funds for emerging areas such as 5G networks, data centers, and digital services.
Shares react to major divestment
Following the announcement, Singtel shares rose as much as 5% before settling up around 3% at S$4.61. They later edged slightly higher to S$4.65. In contrast, Bharti Airtel shares fell about 4.5% on heavy trading volume, with over 55 million shares changing hands through block deals, according to LSEG data.
A Bharti Airtel spokesperson did not respond to a request for comment.
The Singtel Bharti Airtel stake sale underscores Singtel’s ongoing shift toward a leaner, more diversified investment portfolio. As the company continues to recycle assets, it aims to balance its telecom operations with growing digital and enterprise ventures across the region.
