Moneycontrol PRO
Upcoming Webinar:Watch a panel of experts discuss: Challenges of continuously evolving regulation for Cryptocurrency, on 7th July at 3pm. Register Now
you are here: HomeNewsBusiness

Mittals sound out foreign i-bankers on $2 billion fundraise to bankroll partial buyout of Singtel from Airtel

The Mittal family is considering all options for offshore credit such as structured financing, bonds, and even bridge loans

June 02, 2022 / 09:27 AM IST
Sources said that Singtel could sell stake worth $2 billion or approximately 4 percent stake in a mix of Bharti Telecom and Bharti Airtel shares (File image)

Sources said that Singtel could sell stake worth $2 billion or approximately 4 percent stake in a mix of Bharti Telecom and Bharti Airtel shares (File image)

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

The Mittals have approached multiple foreign investment banks to raise around $2 billion through offshore credit lines to buy some part of Singapore Telecommunication’s (Singtel) share in Bharti Airtel, sources told The Economic Times.

The family is considering all options for offshore credit such as structured financing, bonds, and even bridge loans. Banks that have been sounded out include Standard Chartered, JPMorgan, Citibank, BNP Paribas, and the Bank of America, sources told the publication.

Moneycontrol could not independently verify the report.

Sources added that while final terms, quantum and transaction details are yet undecided, the funds will “soon” be used to buy some of Singtel’s stake in the Indian telecom company. Singtel has held stake in Airtel since 2000.

The Mittal family owns 50.56 percent and Singtel 49.44 percent of Bharti Telecom, which in turn owns 35.85 percent of Bharti Airtel. Besides this, Singtel also owns 14 percent directly in Bharti Airtel while the Mittals own 6.04 percent – taking their effective stockholding to 31.72 and 24.13 percent respectively.

Close

Singtel has reportedly been in talks with Sunil Mittal, chairman of Bharti Airtel, to sell a part of its holding in India’s second largest telco for some time now. Sources told the paper that it is looking to book some profit and reinvest in new opportunities.

Last week the Singapore-based company had responded to speculation by stating that Bharti Airtel “remains a core investment” in its international portfolio.

Standard Chartered, JPMorgan, Citibank, BNP Paribas, Bank of America, Bharti Group and Bharti Airtel did not respond to queries, the report added.
Moneycontrol News
first published: Jun 2, 2022 09:27 am
Sections
ISO 27001 - BSI Assurance Mark