Singtel to buy stake in Intouch, India’s Bharti Telecom

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Singapore Telecommunications Thursday said it will acquire a stake in Thailand’s Intouch Holdings and boost its holding in India’s Bharti Telecom (BTL) to take advantage of faster growth in emerging markets.

Singtel said in a statement that it plans to acquire a 21 percent stake in Intouch for 1.58 billion Singapore dollars (USD 1.18 billion) and an additional 7.39 percent stake in Bharti Telecom for 884 million Singapore dollars, through wholly-owned subsidiaries.
“These two transactions…allow us to increase our economic interest in two companies, Advanced Info Service (AIS) and Bharti Airtel, and to operate in two countries where we think there will be a lot more economic growth,” said Chua Sock Koong, group chief executive officer at Singtel Group, in a First on CNBC interview.

She cited those countries’ young population demographics as a positive for the telecom business.

Singtel is buying the shares from wholly-owned subsidiaries of Temasek, the Singapore state investment arm which is the controlling shareholder of Singtel.

Singtel already owns a 39.78 percent stake in Bharti Telecom.

Intouch owns a 40.45 percent stake in Thai telecom operator Advanced Info Service and a 41.14 stake in Thaicom, which operates satellite and media businesses.

Bharti Telecom is the holding company of telecommunication company Bharti Airtel
.

“Intouch and BTL own assets that are leaders in their respective markets, with strong track records of earnings growth. These investments position both companies well to compete and capture the growth in mobile internet services,” Singtel said in a statement.