Singtel Group has revealed plans to subscribe to Bharti Airtel's 250 billion rupee ($3.57 billion) right issue, taking up its full entitlement for its direct stake of 15%.
Airtel will take up 170 million new shares at an issue price of 220 rupees per share for a total of 37.5 billion rupees ($535.7 million).
Airtel major shareholder Bharti Group has also committed to taking its full entitlement under the issue, while fellow major shareholder Bharti Telecom has renounced part of its entitlement in favor of Singapore sovereign investment fund GIC Singapore, which will invest around 50 billion rupees.
The major shareholders and GIC have together committed a total of 67% of the rights issue. The renunciation to GIC will take Singtel's effective interest in Airtel to 35.2%, with the operator maintaining its position as Airtel's largest shareholder.
“Our participation in this rights offering with our partners and a leading investor such as GIC reflects our long-standing commitment to Airtel and the confidence in the future of the Indian market,” Singtel International CEO Arthur Lang said.
“Airtel has performed well despite business headwinds and is consolidating its position in a more sustainable market. Our partnership with Airtel spans some two decades and we continue to take a long-term view of India, having recently invested in Bharti Telecom and Airtel Africa.”