Singtel to raise holding in Bharti Telecom beyond 50%

NEW DELHI: Singtel is likely to raise its stake in Bharti Telecom, the single largest shareholder in Bharti AirtelNSE 2.05 %, to beyond 50%. The move will convert the holding company into a foreign-owned entity and, consequently, take overseas ownership in the mobile operator to over 85%.

At present, Bharti Telecom’s 41% equity stake in Bharti Airtel is classified as ‘domestic’ shareholding as it is majority-owned by the Sunil Mittal family (52% stake).

Even a small rise in the shareholding of Singtel, which currently owns 48% in Bharti Telecom, will result in a reclassification of Bharti Telecom as a ‘foreign’ investor since it will then be majority-owned by the Singapore company.