GQG Partners picks up 0.80% stake in Airtel worth $711 million

7 Mar 2024 , 11:06 AM

GQG Partners, managed by NRI Rajiv Jain, purchased 49 million shares of telecom giant Bharti Airtel on Thursday for Rs 1,193.70 from promoter group business Singapore Telecommunications, or Singtel. The transaction for a 0.8% interest in Airtel is valued at $710.81 million.

The deal, which was carried out through Singtel’s subsidiary Pastel Limited, reduced Singtel’s effective ownership in Bharti Airtel from 29.8% to 29%. Earlier in 2022, Singtel sold a 3.3% direct share in Airtel.

The Sunil Bharti Mittal family and Singapore’s Singtel co-own the telecom company. Singtel stated that it sold a share in Airtel to support the expansion of its data centre and IT services while also reducing net debt.

“We are delighted to have secured S$0.95 billion, and the inclusion of a prestigious name in Airtel’s shareholder roster is noteworthy. With this capital infusion, the Group is now better positioned to implement our prudent capital strategy, ensuring a harmonious blend of investments for enhanced growth and consistent, robust returns for our shareholders,” commented Arthur Lang, Singtel’s Chief Financial Officer.

“Airtel continues to develop steadily across all of its operations, and this has resulted in good market values. We believe there is more space for development given India’s accelerating digital revolution, and we aim to continue committed in the long run while collaborating with Bharti Enterprises to equalise our effective share in Airtel over time,” he said.

In 2022, Google acquired a 1.18% interest in the telecom operator through preferential offer at an issue price of ₹734.

At around 11.00 AM, Bharti Airtel was trading 0.42% higher at ₹1,198.75 per piece, against the previous close of ₹1,193.70 on NSE.

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