(Reuters) -Singapore Telecommunications (Singtel) said on Friday it had sold a 0.8% stake worth S$1.5 billion ($1.16 billion) in India’s Bharti Airtel, as part of the Southeast Asian telecom company’s ongoing asset restructuring strategy.
Singtel’s unit Pastel sold 51 million shares of Bharti Airtel, India’s second-largest telecom operator, at 2,030 rupees ($23.10) apiece, representing a discount of about 3.1% to Airtel’s last close on Thursday.
The divestment is part of Singtel’s S$9 billion mid-term asset recycling programme, which is aimed at funding investments in digital infrastructure and services.
The telecoms company, an investor in Bharti Airtel since 2000, has been gradually reducing its holding to strengthen its balance sheet and enhance shareholder returns.
Singtel now holds a 27.5% stake in Bharti Airtel, down from 31.4% in 2022.
Bharti Airtel shares have more than quadrupled in value since 2019-end, underpinned by strong earnings growth and higher average revenue per user, allowing Singtel to realise gains from its long-held investment.
The deal, executed via a private placement to institutional investors, will bring Singtel an estimated gain of S$1.1 billion, reflecting firm demand for the Indian telecom major’s shares.
Singtel shares rose as much as 5% before trimming gains to trade up about 3% at S$4.61 on Friday, and edged higher to S$4.65 after the announcement. Bharti Airtel shares were last down about 4.5%.
More than 55 million shares of Bharti Airtel changed hands via block deals during the session, according to LSEG data.
Bharti Airtel did not respond to a Reuters request for comment.
($1 = 1.2942 Singapore dollars)
($1 = 87.8950 Indian rupees)
(Reporting by Aleef Jahan and Shivangi Lahiri in Bengaluru; Editing by Mrigank Dhaniwala and Rashmi Aich)
