Singtel this week announced its intend to subscribe to regional associate Airtel’s rights issue for a total consideration of up to S$405 million over a period of up to three years.
This represents Singtel’s full rights entitlement for its direct stake of 14%. Upon closing of the rights issue, Singtel will continue to be Airtel’s single largest shareholder.
With the rights issue, Airtel will be equipped to invest in 5G capabilities and ride the digital growth momentum in India. This is part of Singtel’s strategic reset announced in May to build out digital ecosystems in the region through a multi-local strategy that could involve unlocking assets to reinvest in critical infrastructure that will power the digital economy.
With smart phone users in India expected to reach over 900 million in the next two years and broadband connections growing at a steady clip each month, Airtel seeks to capture the tremendous opportunities in areas such as 5G, home broadband, data centres, cloud services and cyber security.
Singtel’s Group Chief Financial Officer Arthur Lang
Buoyed by the unprecedented wave of digitalisation, Airtel is currently delivering strong revenue momentum across all business segments, reflecting the strength of its portfolio. All this will in turn enable Airtel to contribute sustainably to Singtel.
