SingTel Boosts Stake in India's Bharti Airtel

­Singapore Telecommunications (SingTel) has announced that it is paying around US$393 million to increase its stake in India's Bharti Airtel to 31.95 percent from 30.43 percent currently. The company is buying the shares though its investment arm, Pastel.

SingTel owns 15.57 percent in Bharti Airtel directly, along with a further 14.86 percent in Bharti Telecom, which itself owns 45.3 per cent in Bharti Airtel. The remaining equity in Bharti Telecom is owned by the Bharti Group.

Under terms of the agreement, SingTel will increase its holding in Bharti Telecom to 36.16 percent from 32.81 percent.

"The acquisition is in line with SingTel's strategic focus on maximizing the value of its existing businesses," SingTel said in a statement. "The acquisition will not have a material impact on SingTel's earnings per share nor its net tangible assets per share," SingTel added.

Singapore's sovereign wealth fund, Temasek Holdings, owns a majority stake in SingTel, and also owns just over 5 percent of Bharti Airtel.

Posted to the site on 1st November 2009