On March 7, Singapore Telecommunications (SingTel) announced the sale of a 0.8% stake in Indian telecom giant Bharti Airtel for $711 million to US-based investment firm GQG Partners, according to a Reuters report. This move is part of SingTel’s ongoing efforts in capital recycling, totaling S$8 billion since its strategic reset in 2021.
SingTel’s unit, Pastel, sold 49 million shares, equivalent to 0.8% of Airtel’s outstanding shares. Following the sale, SingTel will retain an effective stake of 29% in Airtel, valued at approximately S$33 billion. This transaction is part of a series of share sales by SingTel in Airtel, including a direct 3.3% stake sale for S$2.54 billion in 2022.
The telecom group expects to record a gain of around S$700 million from this stake sale. SingTel’s finance chief, Arthur Lang, highlighted the Group’s disciplined capital approach, aiming for balanced investment, greater growth, and sustainable returns to shareholders. The company has increased its dividend policy, planning to distribute between 70-90% of underlying net profit, with intentions to pay dividends at the upper end of the range in fiscal 2024.
SingTel shares are currently trading 0.4% higher at S$2.35 each, while Airtel shares are up 0.7% at ₹1,201.95 per share.
