Singtel has announced plans to purchase US$525 million worth of shares in Indian telco Bharti Airtel, which will use the funds to boost its balance sheet amidst continual investment in its networks and spectrum in “a highly competitive home market”. Airtel has been on a fund-raising bid, putting up to US$4.5 billion in shares and bonds, as it looks to cut its debt and better arm itself against competitors such as Reliance.
Singtel alongside Airtel’s major shareholders Bharti Group and Bharti Telecom planned to take up their full entitlement in rights issue, with the exception of a renunciation by Bharti Telecom in favour of GIC Singapore. The Singapore state-owned investment firm had committed an estimated US$700 million, pushing the total rights issue–together with the other major shareholders–to 67 percent.