Singapore Telecommunications (Singtel) has announced it intends to subscribe to regional associate Bharti Airtel’s rights issue at an issue price of INR535 per share for a total consideration of up to INR29.4 billion (approximately US$405 million) over a period of up to three years.
This represents Singtel’s full rights entitlement for its direct stake of 14%. Upon closing of the rights issue, Singtel will continue to be Bharti Airtel’s single largest shareholder.
According to Singtel, with the rights issue, Bharti Airtel will be equipped to invest in 5G capabilities and ride the digital growth momentum in India. This is part of Singtel’s strategic reset announced in May to build out digital ecosystems in the region through a multi-local strategy that could involve unlocking assets to reinvest in critical infrastructure that will power the digital economy.