Parent of Singtel associate in India seeks $1.4b from share sale

MUMBAI • The parent of Bharti Airtel, a Singtel associate, is seeking about US$1 billion (S$1.42 billion) by selling a stake in the Indian mobile carrier after its share price hit a record on signs that the years-long price war is about to end.

Bharti Telecom is selling 150 million Bharti Airtel shares at a floor price of 558 rupees each, according to terms of the deal obtained by Bloomberg. That implies a discount of about 6 per cent to its close last Friday.

Bharti Airtel shares climbed to a record 598.8 rupees last week after it posted a 14 per cent increase in user revenue in the quarter through March.

The entry of billionaire Mukesh Ambani's Reliance Jio Infocomm in 2016 accelerated a consolidation in the market with a billion-plus subscribers, forcing some firms to merge and a few to drop out. The shake-up has left Jio and Vodafone Idea as Bharti Airtel's only non-state competitors.

The deal is one of the largest follow-on offerings in India this year, Bloomberg data shows. Bharti Airtel raised US$3 billion in January from the sale of shares and convertible bonds to help pay additional airwave and licence fees after telecom operators lost a court case.

Singtel last week said it will recognise its share of Bharti Airtel's provision for a one-time spectrum charge at $357 million, or $232 million on a post-tax basis.

BLOOMBERG