SingTel hopes for 100% stake in their telecom JV
SingTel Australia has sought FIPB's approval to hike its stake in the JV from the current 74 percent to 100 percent.
October 14, 2013 / 22:34 IST
Global telco giant SingTel has sought the Indian government’s approval to buy out existing shareholders, including Bharti Enterprises' 9.9% stake, in an international and national long distance telephony JV.
In its Foreign Investment Promotion Board (FIPB) application, SingTel says it also wants to buy out the 16.01% holding of a privately held company, Leela Lace Software Solutions, reports CNBC-TV18 Nayantara Rai.Singtel moved the FIPB on September 19 to increase its stake from 74% to 100% in this joint venture that dates back to 2007. The Indian government in August this year hiked the FDI cap for the telecommunication sector from 74% to 100%. Also read: Nobody in India can buy Airtel, says Sunil Mittal "The existing Indian shareholders, namely Leela Lace Software Solutions and Bharti Enterprises desire to exit the company by transferring their respective entire equity shareholding in the company, aggregating to 26%," states the Singtel application to the FIPB. Analysts say the business of international and national long distance calls contributes less than 5% to Bharti Airtel’s revenues. It’s not clear yet what the topline contribution of this JV is to Bharti Airtel. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
