By Kimberley Kao


Singapore Telecommunications is selling 0.8% of its stake in Indian telecommunications company Bharti Airtel to U.S.-based investment firm GQG Partners for 950.0 million Singapore dollars (US$709.5 million).

The telecom company said Thursday that the sale will result in a gain of about S$700.0 million, bringing Singtel's total capital recycled to S$8 billion since it took on a new strategic direction in 2021.

Singtel will use the capital to continue funding its data centre and IT services as well as to reduce its net debt. This transaction "further strengthens Singtel's balance sheet," the company said.

"We will look at actions to improve total shareholder returns via sustainably growing dividends and share price appreciation. We believe the current share price does not reflect the intrinsic value or growth potential of the Group," Singtel Chief Financial Officer Arthur Lang said.

"We believe there's more room for growth [for Bharti Airtel]," he added. "We intend to stay invested for the long term."

After the sale, Singtel will hold an effective stake of 29.0% in Bharti Airtel, which is worth approximately S$33 billion.

Singtel has been a strategic investor in New Delhi-based Bharti Airtel for over 20 years. It is a mobile operator that currently has 500 million customers in 17 countries.

Singtel shares are trading 0.4% higher at S$2.35, while shares of Bharti Airtel are up 0.6% at INR1200.95.


Write to Kimberley Kao at kimberley.kao@wsj.com


(END) Dow Jones Newswires

03-07-24 0112ET