Singtel to pick 7.39% stake in Bharti Telecom

 Asia’s leading communications and ICT solutions group Singtel has inked a deal with Temasek to acquire 7.39% in Bharti Telecom, and 21% of Intouch Holdings for S$2.47 billion (in Singapore dollars).

Singtel will pay Temasek 60.83 Thai baht for each share of Intouch, and Rs 235.62 for each share of Bharti Telecom. The transaction is subject to the fulfillment of certain conditions precedent, including shareholder and relevant regulatory approvals, and is expected to be completed by December 2016, Singtel said.

Intouch is the biggest shareholder in Thailand’s largest mobile operator Advanced Info Services (AIS). Bharti Telecom is the holding company of Bharti Airtel (Airtel). AIS and Airtel have been associates of the group since Singtel acquired stakes in these businesses in 1999 and 2000, respectively. Through these acquisitions, Singtel will increase its economic interests in AIS and Airtel.

The acquisitions will be settled fully in cash. This 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 and share placement are inter-dependent and have to close at the same time, Singtel said.

“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 a rapidly increasing smartphone penetration and mobile data adoption by a growing middle-class,” Singtel Group CEO Chua Sock Koong said.

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, Singtel added.

Stakebuyingspree
 Singtel in pact with Temasek to buy 7.39% stake in Bharti Telecom
 Singtel to pay Temasek Rs 235.62 for each share of Bharti Telecom
 The Singaplore co will also acquire  21% of Intouch Holdings 
 The acquisitions to be settled fully  in cash