Bharti Airtel share price jumps almost 4% after BTL, Singtel agree for share re-structuring; check details of share acquisition

Shares of Bharti Airtel rose almost four per cent in BSE intraday trade on Thursday after Bharti Telecom Limited (BTL) announced to further strengthen its position in the telecom company.  

The shares rose 3.93% to Rs 768 per share on its previous closing after Bharti and Singtel, Singaporean the telecommunications giant, decided to make some directional shifts in their respective holdings.  

As per the share restructuring, BTL will raise its stake in Bharti Airtel, while Singtel will sell 3.3% stake to the tune of Rs 12,890 crore in the company. Post share sale, Singtel will have a 29.7% stake in Bharti Airtel (19.2% indirect stake through Bharti Telecom and a 10.5% direct stake) 

"BTL will further strengthen its shareholding in Airtel. Accordingly, Singtel and its affiliates have entered into an agreement to transfer ~3.33% shares to BTL for an aggregate amount of approx. SGD 2.25 billion, leaving direct shareholding of Singtel and Bharti in Airtel at ~10% and ~ 6% respectively," said Bharti Airtel in a BSE filing on Thursday.  

The acquisition is to be completed over a period of 90 days. 

Bharti and Singtel have agreed to work towards equalizing their stake in Airtel over a period of time. BTL will calibrate and spread such acquisitions to maintain a comfortable level of leverage. 

"Bharti Enterprises and Singtel have had over 20 years of solid partnership based on mutual respect and trust resulting in a rewarding outcome. Over these years, Bharti Airtel Limited (Airtel) has not only acquired a strong pan-India leadership position, but has also expanded to 16 more countries in Africa and South Asia," the company said in the regulatory filing. 

Throughout this period, Singtel and Bharti have participated in Rights issues, acquisition and sale of shares maintaining a healthy inter-se balance in their shareholding under the control and management of Bharti in Airtel, the company added.