Bharti Telecom Ltd to increase stake in Bharti Airtel Ltd

Bharti Enterprises and Singtel have had over 20 years of solid partnership based on mutual respect and trust resulting in a rewarding outcome. Over these years, Bharti Airtel Limited (Airtel) has not only acquired a strong pan-India leadership position, but has also expanded to 16 more countries in Africa and South Asia.

Throughout this period, Singtel and Bharti have participated in Rights issues, acquisition and sale of shares maintaining a healthy inter-se balance in their shareholding under the control and management of Bharti in Airtel.

Bharti and Singtel have decided to make some directional shifts in their respective holdings in Airtel and have agreed that:

- Bharti Telecom Limited (BTL), the promoter of Airtel, an entity held by Bharti and Singtel, has been and will continue to be the principal vehicle to hold Controlling Shares in Airtel.

- BTL will further strengthen its shareholding in Airtel. Accordingly, Singtel and its affiliates have entered into an agreement to transfer ~3.33% shares to BTL for an aggregate amount of approx. SGD 2.25 billion, leaving direct shareholding of Singtel and Bharti in Airtel at ~10% and ~ 6% respectively. The acquisition is to be completed over a period of 90 days.

- Bharti and Singtel have agreed to work towards equalizing their stake in Airtel over a period of time.

BTL will calibrate and spread such acquisitions to maintain a comfortable level of leverage.

Shares of Bharti Airtel Limited was last trading in BSE at Rs. 737.60 as compared to the previous close of Rs. 727.50. The total number of shares traded during the day was 94659 in over 4123 trades.

The stock hit an intraday high of Rs. 742.65 and intraday low of 719.15. The net turnover during the day was Rs. 69377847.00.

Source : Equity Bulls

Keywords

BhartiAirtel INE397D01024 BhartiTelecom Singtel ControllingShares Acquisition