Stakes in the largest mobile-phone operators in India and Thailand would give Singtel a bigger foothold in the two markets and in Africa, where Bharti operates wireless services. It also owns a stake in Bharti Airtel Ltd. through Bharti Telecom, whose shareholders also include the Indian phone company’s Chairman Sunil Bharti Mittal and Temasek.
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Singtel said in a statement that it plans to acquire a 21 per cent stake in Intouch for S$1.58 billion and an additional 7.39 per cent stake in Bharti Telecom for S$884 million, through wholly-owned subsidiaries.
The Singapore government’s investment group, Temasek, is talking about selling part of its indirect stake in Thailand’s Advanced Info Service (AIS) to Singtel, in which Temasek also owns a stake. The Singaporean carrier began investing in those businesses in 1999, it said.
The deal is expected to be completed by December 2016, according to the statement. Singtel shares headed for a second day of declines in Singapore, while the yield on its 2021 notes has climbed nearly 7 basis points this week to 1.95%, according to Bloomberg-compiled prices.
Singtel said it will pay Temasek THB60.83 for each share of Intouch and INR235.62 for each share of Bharti Telecom.
Singtel shares have risen 15 percent this year, compared with the 1.4 percent drop in the Singapore benchmark Straits Times Index. Singtel, which is 51.1 per cent owned by state investor Temasek, said the acquisitions and share placement are interdependent and have to close at the same time.
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