Singapore Telecommunications (Singtel) on Thursday said it will pick up 7.39 per cent stake in Bharti Telecom, the holding company of India's largest telecom service provider Bharti Airtel, a company statement said.
"Singtel today entered into conditional share purchase agreements with Temasek to acquire 21 per cent of Intouch Holdings Public Company Limited and 7.39 per cent of Bharti Telecom Limited for a total consideration of S$2.47 billion ($1.8 billion)," the statement said.
It mentioned that the acquisitions will be settled fully in cash.
"This transaction will be funded through internal cash, short-term debt and proceeds from a share placement of 386 million new Singtel shares to Temasek totalling S$1.605 billion at a price of S$4.16 per new share," the statement said.
The acquisitions are in line with Singtel's long-term strategy to increase its exposure to high-performing associates in its portfolio of leading telecom businesses in the region, it added.
"Thailand, India and Africa continue to be attractive, high-growth markets for us. As a Group, we enjoy great synergies, economies of scale, and collaborative innovation," said Chua Sock Koong, Group CEO, Singtel.
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"Singtel will pay Temasek THB60.83 for each share of Intouch and Rs 235.62 for each share of Bharti Telecom. The transaction is subject to the fulfilment of certain conditions precedent, including shareholder and relevant regulatory approvals, and is expected to be completed by December 2016," the statement added.
Bharti Airtel declined to comment on the matter.
Bharti Airtel's shares were trading at Rs 352.15 per share, up two per cent at 3.02 p.m. in the BSE.
--IANS
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