Bharti Airtel promoter, Bharti Telecom will buy a 3.33 per cent stake from Singtel for 2.25 billion Singapore dollars or about ₹12,895 crore in 90 days.
Bharti Group chairman, Sunil Bharti Mittal's family and Singtel own Bharti Telecom (BTL).
"Singtel and its affiliates have entered into an agreement to transfer 3.33 per cent shares to BTL for an aggregate amount of 2.25 billion Singapore dollars, leaving direct shareholding of Singtel and Bharti in Airtel at 10 per cent and 6 per cent, respectively," Bharti Airtel said in a regulatory filing on Thursday.
The acquisition is to be completed over a period of 90 days.
Strong partnership
"BTL, the promoter of Airtel, an entity held by Bharti and Singtel, has been and will continue to be the principal vehicle to hold controlling shares in Airtel," it said.
It further said that Bharti and Singtel have agreed to work towards equalising their stake in Airtel over a period of time, adding that BTL will calibrate and spread such acquisitions to maintain a comfortable level of leverage.
Bharti Enterprises and Singtel have had over 20 years of partnership. Over these years, Airtel has not only acquired a strong pan-India leadership position, but has also expanded to 16 more countries in Africa and South Asia.
Throughout this period, Singtel and Bharti have participated in Rights issues, acquisition and sale of shares maintaining a healthy inter-se balance in their shareholding under the control and management of Bharti in Airtel, the company added