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Singtel to invest Rs 2,649 cr in Airtel

The funds raised will be used towards debt reduction, says Bharti in a statement on Monday

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Singapore Telecommunications (Singtel) will invest Rs 2,649 crore in Bharti Telecom, the holding company of India’s largest telecom player Bharti Airtel, through preferential allotment of shares.

This is the second investment by Singtel in two years in Bharti. The funds raised will be used towards debt reduction, Bharti said in a statement on Monday.

With this investment, Singtel’s total stake (along with its affiliates) in Bharti Telecom will increase to 48.90%. Singtel currently holds 47.17% stake in Bharti Telecom and Bharti Enterprises continues to hold over 50% stake in the Sunil Mittal-promoted firm.

The transaction is subject to the Bharti Telecom shareholders’ approval.

The investment comes within 23 months of Singtel’s participation in Bharti Telecom’s right issue of Rs 2,500 crore, which was completed in February 2016.

“While there are currently headwinds in India, we take a long-term view of our investment in Airtel which continues to be a strong market leader in a region with rapidly increasing smartphone penetration and mobile data adoption,” Arthur Lang, CEO International at Singtel, said in a statement.

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