“GQG Partners Invests ₹5,850 Crore in 0.8% of Bharti Airtel Shares, Led by Rajiv Jain”

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In a significant move reflecting Southeast Asia’s telecom landscape, Singapore Telecommunications (SingTel) announced the sale of a 0.8% stake in Bharti Airtel to U.S.-based investment firm GQG Partners for ₹5,850 crore. This transaction marks the latest in a series of efforts by Southeast Asia’s largest telecom operator to streamline its capital, with total capital recycling reaching S$8 billion since its strategic reset in 2021.

SingTel disclosed that its unit Pastel sold 49 million shares, equivalent to 0.8% of Bharti Airtel’s outstanding shares, effectively reducing its stake in the telecom operator by 0.8 percentage points. Post-transaction, SingTel will hold an effective stake of 29% in Airtel, valued at around S$33 billion.

Arthur Lang, SingTel’s finance chief, emphasized the company’s disciplined capital approach aimed at balancing investment for growth and delivering sustainable returns for shareholders. Lang anticipates recording a gain of approximately S$700 million from the stake sale, without elaborating on the difference with the divestment price.

SingTel has prioritized enhancing shareholder returns, evidenced by its raised dividend policy to between 70% and 90% of underlying net profit as of November last year. The company is on track to pay dividends at the upper end of the range in fiscal 2024.

Expressing confidence in SingTel’s intrinsic value and growth potential, Lang noted that the current share price does not accurately reflect the company’s prospects. SingTel’s shares are currently trading 0.4% higher at S$2.35 apiece, while Airtel’s shares are up 0.7% at 1,201.95 rupees per share.

Neither Airtel nor GQG Partners immediately responded to Reuters’ request for comments, underscoring the dynamic nature of the transaction and potential implications for both entities. As telecom markets continue to evolve, strategic investments and divestments play a pivotal role in shaping the competitive landscape, with stakeholders closely monitoring developments for insights into future trajectories.

Sources By Agencies