Singapore Telecommunications Ltd said on Thursday it would sell a 3.3% stake in Bharti Airtel Ltd to Bharti Telecom Ltd for an aggregate consideration of about S$2.25 billion ($1.61 billion).
Singtel, southeast Asia's largest telecom firm, said its units Pastel Ltd and Viridian Ltd would together sell 198 million shares they hold in India's second-biggest telecom operator.
The stake sale comes at a time when Singtel trims down its portfolio to sharpen focus on core businesses.
Singtel said last month it would sell its loss-making digital marketing arm Amobee for $239 million, monetised a 1.6% stake in Airtel Africa for about S$150 million in March, and sold a 70% stake in its Australian tower network for A$1.9 billion last year.
After the stake sale, Singtel's effective holding in Bharti Airtel will fall to 29.7%, it added.
Proceeds from the sale may be used to reduce the group's debt and fund 5G capital expenditures and growth initiatives. ($1 = 1.3934 Singapore dollars)
Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks