Bharti Enterprises chairman Sunil Mittal to raise stake in Bharti Airtel by 3.3%.

The share purchase will be done through the promoter arm Bharti Telecom and is expected to close within 90 days. The Mittal family’s current effective holding in Bharti Airtel is 24.13 percent.

Bharti Enterprises Chairman Sunil Mittal is enhancing his stake in Bharti Airtel with the acquisition of 3.3 percent stake in the telco from his Singapore-based partner Singtel for around S$ 2.25 billion (Rs 12,895 crore).

The share purchase will be done through the promoter arm Bharti Telecom and is expected to close within 90 days. The Mittal family’s current effective holding in Bharti Airtel is 24.13 percent.

Singtel and Bharti group have been partners for over two decades and the Singapore-based communication technology group is divesting a portion of its stake to fund its 5G Capex and other growth plans over the next few years.

The Mittal family and Singtel are co-investors in Bharti Telecom, the promoter holding company in Bharti Airtel with 50.56 percent and 49.44 percent, respectively. Additionally, the Mittal family and Singtel directly own 6.04 percent and 13.8 percent stakes in Airtel.

“After this transaction, the Singtel Group is expected to own an effective stake of 29.7 percent (in Airtel). This comprises a 19.2 percent indirect stake through Bharti Telecom and a 10.5 percent direct stake,” Singtel said in a press statement. Bharti Airtel’s current market capitalization is over Rs 4.15 trillion.

Speaking about the development, Sunil Mittal said: “Bharti Enterprises and Singtel have had two decades of an exceptional partnership based on mutual respect and trust. Over these years, Airtel has acquired a strong pan-India leadership position and also expanded to 16 countries in Africa and South Asia. After this inter-se transaction, Bharti Telecom will remain the principal vehicle to hold controlling shares in Airtel. Bharti Enterprises and Singtel have agreed to work towards equalizing their effective stake in Airtel over time. Bharti Enterprises looks forward to working with Singtel over the long term in taking Airtel to an even greater position of success.”