Singapore Telecommunications (SingTel) has announced that it is paying around US$393 million to increase its stake in India's Bharti Airtel to 31.95% from 30.43% currently. The company is buying the shares though its investment arm, Pastel.
SingTel owns 15.57% in Bharti Airtel directly, along with a further 14.86% in Bharti Telecom, which itself owns 45.3% in Bharti Airtel. The remaining equity in Bharti Telecom is owned by the Bharti Group.
Under terms of the agreement, SingTel will increase its holding in Bharti Telecom to 36.16% from 32.81%.
"The acquisition is in line with SingTel's strategic focus on maximizing the value of its existing businesses," SingTel said in a statement. "The acquisition will not have a material impact on SingTel's earnings per share nor its net tangible assets per share," SingTel added.
Singapore's sovereign wealth fund, Temasek Holdings, owns a majority stake in SingTel, and also owns just over 5% of Bharti Airtel.
