Airtel’s stock price down by 2.85% as Singapore’s Singtel sells 1.2% stake in Bharti Airtel

Telecom company Singtel has sold up to 1.2 per cent of its stake in India’s Bharti Airtel, a subsidiary of Airtel Africa, for $1.54 billion (2 billion Singapore dollars) and realised an estimated gain of $1 billion (1.4 billion Singapore dollars). The development has now reduced Airtel’s stock price by 2.85 per cent as of the closing hours of Thursday.

A unit of the Singapore-based network provider, Pastel, sold 71 million shares in Airtel at $21.19 per share on Thursday. Following the sale, Singtel, which has been an investor in Airtel for more than 20 years, has seen its stake drop from 29.5 per cent to 28.3 per cent and is now valued at $37 billion.

However, Singtel has been selling shares in Airtel. It sold a 0.8 per cent stake to GQG Partners in March 2024. However, after the sale to GQG, the last one it reported, Singtel said it had a 29 per cent stake in Airtel. CQG is a US-based company creating financial software for market technical analysis, charting, and electronic trading. Ever since it embarked on a strategic reset in 2021, the Singapore-based telecom firm has sought to effectively use its capital and improve shareholder returns.

“This transaction allows us to crystalise value at an attractive valuation … and underscores Singtel’s commitment to disciplined capital allocation and sustained value realisation for shareholders,” CFO Arthur Lang said in a statement.

As part of its plan, Singtel said it has been working with Bharti Enterprises, an Indian group run by Airtel’s Sunil Bharti Mittal, to equalise its effective stake in Airtel in the medium term. This could involve buying or selling shares, restructuring their investment, or making other strategic moves to achieve a more balanced ownership position where the goal is to strengthen their partnership and improve strategic alignment.

While experts had pointed out that Lang’s goal was to match Mittal’s stake in Airtel, the sale was in line with Singtel’s capital recycling plan. 

Also Read: Airtel Africa launches 2nd tranche of $100m buyback phase with over $55m as returns target.

Singtel (Singapore Telecom) is Singapore’s principal fixed-line operator and one of the four major mobile network operators in the country. The company is the largest mobile network operator in the country with 4.1 million subscribers and, through subsidiaries, has a combined mobile subscriber base of 770 million customers as of 31 March 2022.

Singtel is the second-largest company in the country by market capitalisation and controls a significant market share in Australia and Singapore, with 82 per cent of the fixed-line market, 47 per cent of the mobile market, and 43 per cent of the broadband market in Singapore. It has expanded aggressively outside its home market and owns shares in many regional operators, including full ownership of Australia’s second-largest telecom, Optus, and India’s Bharti Airtel. 

Backtrack on the Singtel-Airtel relationship 

In October 2018, Singtel agreed with Airtel to invest $250 million in Airtel Africa Ltd. While Singtel holds a 39.5 per cent effective stake in the Group as of then, the investment forms part of the 31.25 billion that Airtel has secured from global investors, including Temasek, Warburg Pincus, and Softbank Group International. The investment was secured through a primary equity issuance in Airtel Africa, at a post-money equity value of $4.4 billion. 

The proceeds from the investments were directed at reducing its existing debt and growing its business ahead of an intended Initial Public Offering. The move was the first part of a two-stage fundraising exercise aimed at paring Airtel’s over $15 billion consolidated debt. The company also appointed a new board of Directors, which consisted of its representatives and investors.

Singtel’s Arthur Lang said then that the investment in the mobile operator reflects its confidence in Africa’s long-term growth, with its young and growing population. Singtel also exercised a strong belief in Airtel’s transformation strategy to become a leader in data, mobile money, internet penetration, and smartphone adoption in Africa.

As of March 31, 2025, Airtel Africa’s customer base grew by 8.7 per cent to 166.1 million, attributed to an increase in digital inclusion, supporting a 4.3 per cent growth in smartphone penetration to 44.8 per cent. The company also returned to profit with a revenue of $328 million – a huge 468.2 per cent surge compared to the $89 million loss in FY’24, which was significantly impacted by derivative and foreign exchange losses mainly in Nigeria.

The company continues to uplift customer experience and sustain network investment with the rollout of 2,583 new sites and approximately 3,300 km of fibre, supporting increased data capacity across Africa. Its mobile money has now processed $145 billion in transactions, representing a 34 per cent growth. Total customers also surged by 17.3 per cent to 44.6 million, driven by enhanced digital offerings and expanded use cases.