HOME > BUSINESS > Singtel buys stake in Bharti Airtel from Temasek

Singtel buys stake in Bharti Airtel from Temasek

airtel

Singtel today entered into conditional share purchase agreements with Singapore’s sovereign investment firm Temasek to acquire 7.39% of Bharti Telecom — the holding company of Bharti Airtel — and 21% of Intouch Holdings — which holds stake in Thailands’ biggest mobile operator — for a total consideration of S$2.47 billion.

Intouch is the biggest shareholder in Thailand’s largest mobile operator Advanced Info Services Public Company Limited (AIS).

The acquisitions and share placement are interdependent and have to close at the same time, SingTel said.

Bharti Telecom is the holding company of Bharti Airtel, India’s largest telecommunications company which has operations in 18 countries across South Asia and Africa.

AIS and Airtel have been associates of SingTel Group since Singtel acquired stakes in these businesses in 1999 and 2000 respectively.

The move to increase stake comes at the time of industry consolidation. The recent mobile spectrum auctions in Thailand and ongoing industry consolidation in India have strengthened their competitive positions.

“They have also built for the future, securing significant spectrum for the long term and investing extensively in 3G and 4G networks and services,” Singtel said.

Ms Chua 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.” Singtel will pay Temasek THB60.83 for each share of Intouch and INR235.62 for each share of Bharti Telecom.

Through these acquisitions, Singtel will increase its economic interests in AIS and Airtel. Ms Chua Sock Koong, Singtel Group CEO, said, “Singtel has been a strategic partner to both AIS and Airtel for more than 15 years. We have built deep and trusted relationships, worked well together through the years, sharing knowledge and expertise and we have grown together, from strength to strength. Today, they have a combined mobile customer base of more than 380 million across Asia and Africa. This is a unique opportunity for us to deepen our relationships with two great market leaders.”

The acquisitions are in line with the Group’s long-term strategy to increase its exposure to high-performing associates in its portfolio of leading telecom businesses in the region.

Thailand and India are fundamentally attractive markets which are reaping the benefits of rapidly increasing smartphone penetration and mobile data adoption by a growing middle class. Both AIS and Airtel are well-positioned to benefit from these trends.

The acquisitions will be settled fully in cash, SingTel said.

The 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 acquisitions of the stakes in Intouch and Bharti Telecom, as well as the share placement are subject to minority shareholder and regulatory approvals.

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.

An independent financial adviser (IFA) will be appointed to advise the independent directors of the Board. The advice of the IFA and the recommendation of the independent directors will be sent to shareholders prior to the convening of a shareholders’ meeting. Temasek is an interested party and will abstain from voting at the meeting.

Follow ULTRA.news
Idea Cellular likely to expand 4G offers this year Idea Cellular, India's third biggest telecom player by revenue, is likely to see its 4G data capacity rise to three times the current level over the next nine months, which is likely to push the price of data down further.This could impact Reliance Jio's ability to stop its d...
Bharti Airtel will launch VoLTE next year Bharti Airtel is still testing its 4G voice or Voice over LTE service and a pan-India launch will take place only by January-March of 2018.Gopal Vittal"VoLTE is a very complex technology," CEO Gopal Vittal said. "There is a lot of optimization. It has to be tested device...
No plans to launch JioPhone rival – Bharti Airtel Bharti Airtel, India's largest telecom provider by revenue, said it has no intention of launching a rival phone similar to the super-cheap semi-smartphone launched by rival Reliance Jio.Asked if the company needed to come out with a similar, affordable handset to compete with...
HALVED: Bharti Airtel’s data price crashes to Rs 60/GB due to Reliance Jio Bharti Airtel was forced to slash its data price by half to about Rs 60 per GB in the April to June period of 2017, the latest numbers revealed.In contrast, Bharti Airtel was charging around Rs 125 per GB in the three months from January to March of this year. A year ago, it ...
Bharti Airtel profit down 75%, says market remains “turbulent” Bharti Airtel Limited reported a drop of 14% in its revenue for the first quarter, at Rs 21,958 crore. Adjusted for sale of its units, the drop was 11%, it said.Net profit fell 75% to 367 crore rupees for the first quarter. Operating profit was down 18%.India revenues for...
Bharti Airtel Q1 revenue up 10%, profit down 12% Tower provider Bharti Infratel reported a 10% growth in its revenue and profit for the first quarter.The Consolidated revenues for the quarter, at Rs. 3,524 Crore, was up by 10% over the corresponding period last year.Consolidated profit from operations improved to Rs 1,...
Reliance Jio offers phone for ‘free’, unlimited voice, data at Rs 153 Reliance Jio chairman Mukesh Ambani announced the JioPhone, which aims to bring smartphone features to the candybar form factor.The phone will be given to anyone if they deposit Rs 1500 with the company. The user will get the Rs 1500 back when the device is returned after 36 ...
WATCH HERE: Mukesh Ambani speech on Reliance Jio at AGM today Mukesh Ambani, chairman of Reliance Jio will make a 'significant announcement' about the 4G wireless service provider's offerings at 11 AM on Friday while delivering his annual speech at its parent's annual general meeting.A live webcast of Mukesh Ambani's speech at the AGM, a...
BSNL halves 2Mbps unlimited plan to Rs 599 from 1,199 Faced with a slowdown due to the emergence of the pan-India competitor Reliance Jio, state-owned Bharat Sanchar Nigam Ltd has halved the price of its unlimited 2 Mbps DSL broadband plan to 599 per month.BSNL NEW UNLIMITED BROADBAND PLANThe player was earlier offering unl...
Reliance Capital receives Rs 378 cr from Nippon Life for AMC stake Anil Ambani Group's Reliance Capital said it received Rs. 378 crore from Nippon Life Insurance, one of the largest life insurers in the world, after the foreign company increased its stake in Reliance Nippon Life Asset Management Limited to 49%.The original agreement to incre...
Spectranet overtakes Airtel Broadband on Netflix speed ranking for India Netflix, the world's biggest distributor of movies, ranked Mumbai-based 7 Star cable network and Spectranet, which offers fiber broadband in several cities, as the fastest networks for prime time usage.The average speed available to Netflix was 2.77 Mbps on 7 Star cable and 2...
With tariff change, Idea Cellular 4G data now cheaper than Reliance Jio Idea 4G tariff planWith Reliance Jio raising the price of its 1GB-per-day pack from Rs 309 to Rs 399, Idea Cellular has managed to beat the new operator in this segment, though not by much.Idea Cellular offers 1GB/day for 84 days at Rs 397, making it cheaper by 2 rupees....
RELIANCE JIO unveils NEW PLANS valid from today Reliance Jio's new tariff plansIndia's biggest wireless data provider Reliance Jio unveiled a new set of plans as it continues to migrate its customers towards paid plans.The key difference between the new plans and the previous Dhan Dhana Dhan offer is that the new plan...
LAST CHANCE: Reliance Jio’s Dhan Dhana Dhan offer ends today Today marks the last day of telecom operator Reliance Jio's Dhan Dhana Dhan promotional offer that triples the validity of 4G recharges on its platform.The offer was unveiled as a promotional scheme on April 11, and according to the law, promotional schemes can be valid only ...
Reliance Jio to offer 5 GB/day for Rs 999 per month Users of the JioFi, the personal hotspot device from Reliance Jio, will be able to get a new plan that takes the free data offered per day to 5 GB.At present, the highest amount of free data that any user on the 4G service can get is 2 GB, for a payment of around Rs 500 for 2...
Bajaj Auto, KTM decide to invest into Husqvarna motorcycle brand Bajaj Auto said it agreed with its Austrian associate KTM to expand the brand sales and shift some of the production of Husqvarna motorcycles to Bajaj's factory in Chakan, Maharashtra.The brand Husqvarna, founded in 1903 in Italy, used to be owned by BMW at one time. It was b...
News Corp buys Bangalore-based media software firm GyanMatrix Rupert Murdoch's News Corp announced yet another acquisition in India with the agreement to purchase Bangalore-based GyanMatrix Services Private Limited.P Hariharan, founder GyanMatrixThe company, which provides software solutions for media and publishing companies, will...
HPCL appoints bankers for Rs 6,000 cr FCCB issue Hindustan Petroleum Corp Ltd said it had appointed banking intermediaries for organizing investor meetings in the run up to raising Rs 6,000 cr ($930 mln) by selling foreign-currency denominated bonds.The bonds will be non-convertible, and will be issued if the meetings disco...
Anil Ambani Group ties up with Thales for Rafale contracts Reliance Defence, the defence manufacturing arm of the Anil Ambani group, said it will form a joint venture in India with global defence manufacturer Thales to carry out some contracts related to the Rafale jet deal.The Indian company will hold 51% of the equity while the fo...
Axis Bank confirms exiting POS maker Mswipe Axis Bank confirmed it had sold its 8% share in new-generation card-swiping-machine company Mswipe Technologies.In a regulatory filing, the private sector bank said it sold its 8% stake for Rs 80.94 cr, or Rs 4,249 per share.Mswipe is one of the new generation, low-cost ...
Reliance Jio tops in user satisfaction, but call drop concerns remain Percentage of customers giving 4 or 5 starsReliance Jio users are a happier lot than customers of other services, but call drops and network availability remain key concerns, according to a survey conducted by a market research firm Velocity MR.The firm conducted a study...
RIL stock up as Reliance Jio proves doubters wrong, avoids an April dip in subscribers Shares of Reliance Industries rose 3.5% today -- an extraordinary move for such a large company -- after it emerged that not only did the company not lose subscribers when it made the transition from free to paid services in April, it actually added a few million.The result ...
Grasim-Adiya Birla Nuvo merger approved, ABFSL listing soon The Aditya Birla Group said it got the approval of the Company Law Tribunal for the merger of Aditya Birla Nuvo Ltd and Grasim industries Ltd and the listing of Aditya Birla Financial Services Ltd.The approval was obtained from the Ahmedabad bench."The approved Scheme ha...
Sun TV could benefit from RCom’s financial troubles Newer equipment from Reliance Digital TV come with Chois HD 4K brandingSun Direct, the DTH arm of Sun TV, could end up benefiting from the financial troubles faced by Anil Ambani Group's Reliance Communications.Speaking to media yesterday, Reliance Communications top hon...
Bharti Airtel gets SEBI and stock exchange nod for Telenor acquisition Bharti Airtel said it received the approval of the Securities and Exchange Board of India, BSE and National Stock Exchange of India for its proposed merger with Telenor India. Bharti Airtel further stated that Telenor India and Airtel have today filed the joint company appli...