Singtel to spend up to $413 million to nudge up stake in India's Bharti Telecom

Published: February 5, 2018
Email
A Singtel logo is pictured at their head office in Singapore February 11, 2016.
PHOTO: REUTERS

A Singtel logo is pictured at their head office in Singapore February 11, 2016. PHOTO: REUTERS

Singapore Telecommunications (Singtel) said it would spend up to $413 million on shares in India’s Bharti Telecom, lifting its stake slightly in the holding company for Bharti Airtel to just under half.

Cybercrime: Threats through electronic communication criminalised

“While there are currently headwinds in India, we take a long-term view of our investment in Airtel which continues to be a strong market leader in a region with rapidly increasing smartphone penetration and mobile data adoption,” Arthur Lang, CEO International at Singtel, said in a statement.

India’s telecommunications sector has been hit hard by a price war since the entry of carrier Reliance Jio, the telecoms arm of Reliance Industries, more than a year ago.

The purchase worth as much as 26.5 billion rupees could increase Singtel’s stake in Bharti Telecom by up to 1.7% points to 48.9 per cent and its holding in Bharti Airtel, the country’s biggest mobile carrier, by up to 0.9% points to 39.5 per cent. The deal will be done via a preferential share allotment.

IT minister says SMEs’ development crucial for cross-border e-commerce

Singtel has assembled a portfolio of stakes in regional mobile firms outside its small home market, and overseas businesses now account for about 75 per cent of its core earnings.

Facebook Conversations

More in Technology