Singtel to divest 3.3% stake in Airtel for S$2.25 billion

Investors send stock up 1.9 per cent; analysts see chance of higher dividends

Michelle Zhu

Published Thu, Aug 25, 2022 · 08:23 AM

SINGTEL has agreed to sell a 3.3 per cent direct stake in its regional associate Bharti Airtel to Bharti Telecom, its joint venture with India’s Bharti Enterprises, for S$2.25 billion.

In a statement on Thursday (Aug 25), the telecommunications company said it expects to net a gain of S$600 million from the transaction. Singtel : Z74 0% will be left with a 29.7 per cent effective stake in Airtel – comprising a 19.2 per cent indirect stake through Bharti Telecom, and a 10.5 per cent direct stake.

If the deal had been completed on Mar 31, 2022, the company’s pro forma consolidated net tangible assets would have risen to S$16.8 billion from S$16.14 billion, while net tangible assets per share would have risen to S$1.02 from S$0.98. Assuming the deal had been completed on Apr 1, 2021, pro forma net profit would have risen to S$2.54 billion, from S$1.95 billion, while earnings per share would have risen to S$0.15 from S$0.12.