JSA, Herbert Smith Freehills, TT&A and Linklaters have advised on Singtel’s divestment of 1.2% of its direct stake in regional associate Bharti Airtel for USD1.5 billion.
JSA advised Pastel Limited, a wholly owned subsidiary of Singapore’s Singtel, sold 1.2% of Bharti Airtel’s equity capital via a private placement to international and Indian institutional investors, including existing shareholders.
The JSA transaction team comprised lead partner Vikram Raghani, partner Bir Bahadur Sachar, principal associate Ami Shah and associate Tavishi Chandra. Herbert Smith Freehills was international counsel for Singtel.
TT&A represented the sole broker involved in the transaction, JP Morgan India, with partner Abhinav Kumar and managing associate Shubham Sancheti leading the team. Linklaters was international counsel for JP Morgan India.
Singtel’s divestment is part of an ongoing capital management strategy to optimise its asset portfolio and deliver sustainable shareholder returns. The placement attracted strong demand from current shareholders and new investors, leading to a significant oversubscription. A substantial portion of the stake was allocated to domestic mutual funds and international long-only funds, underscoring robust investor confidence.
“The divestment underscores Singtel’s commitment to disciplined capital allocation and sustained value realisation for shareholders. This is a key tenet of our Singtel28 growth plan, where we’ve identified active capital management and the financial flexibility it brings as integral to funding growth initiatives while supporting capital returns,” said Arthur Lang, chief financial officer at Singtel Group.
After this transaction, Singtel will hold 28.3% stake in Airtel.
