SingTel, Bharti have first right to buy Temasek stake in Airtel

NEW DELHI: Singapore Telecom (SingTel) and Bharti Enterprise, the top two shareholders of Bharti Airtel, will have the first right to buy the stake acquired by Singapore government's investment arm Temasek in the mobile company.

Temasek has been granted an option to indirectly acquire 4.99 per cent in the Sunil Mittal-led company. Bharti Airtel shares were up at Rs 866.75 on the bourses on Wednesday.

SingTel, which owns 30 per cent in Bharti Airtel, on Wednesday said it along with Bharti Enterprise have the first right of refusal to the shares bought by Temasek in the mobile firm.

"Should Temasek decide to exercise its option to purchase the shares from Bharti, and should Temasek decide to sell these shares thereafter, Bharti and Singtel have first rights," a SingTel spokesperson said.

A Bharti spokesperson said Temasek, after it exercises the option to acquire the stake in Bharti Airtel, will be bound under the agreement that at the time of exit it has to sell these shares to either one or both Bharti and SingTel. It cannnot sell the stake to any third party.

"The relevant parties have reached agreement that SingTel and Bharti have first rights to the shares acquired by Temasek pursuant to the exercise of the option, subject to certain conditions," SingTel said in a statement.

Temasek also holds 56 per cent stake in SingTel.