GQG Companions buys 0.8 per cent stake in Airtel for over $700 million

After investing within the Adani Group and another firms in India, the US-based funding agency GQG Companions has acquired a major chunk in Bharti Airtel, shopping for 0.8 per cent direct stake from Singtel for S$950 million ($712.5 million).

Singapore Telecommunication mentioned in a regulatory submitting that it bought 0.8 per cent stake in its regional affiliate, Airtel, to GQG Companions, the acquire from the sale being S$700 million. It bought 49 million shares at ₹1,193.7 every. With this sale, its stake in Airtel stands diminished to 29 per cent, price round S$33 billion.

Rajiv Jain-led GQG Companions stormed into the Indian investor consciousness in March 2023 when it picked up small chunks in Adani Group firms, whose shares have been bludgeoned after short-seller Hindenburg Analysis’s allegations in opposition to the group. It has invested over $4 billion within the group, and the worth has greater than doubled, in accordance with reviews.

It has invested in different Indian firms reminiscent of JSW Vitality, Patanjali Meals, IDFC First Financial institution and GMR Airports Infrastructure, the entire worth of its India portfolio at round $22 billion. Just lately, Jain instructed a tv channel that the Indian market had a very good runway with a three-year timeframe.

Singtel unlocking worth

Singtel, which has been an investor in Airtel for over twenty years, mentioned that the transaction was the newest within the group’s capital recycling efforts to unlock worth from its property, bringing the entire capital recycled to S$8 billion since its strategic reset in 2021.

“This has allowed the Group to fund the expansion of its knowledge centre and IT companies, in addition to scale back internet debt by S$3.2 billion as of end-September 2023. The Group has additionally returned S$0.8 billion in particular dividends to shareholders from capital recycling, contributing to cumulative dividends of S$5.2 billion paid out to shareholders since April 2022,” it added.

The group was in a robust place to execute its disciplined capital strategy of balancing investing for increased development and delivering sturdy, sustainable returns for its shareholders, mentioned Singtel Group CFO Arthur Lang.

“We are going to take a look at actions to enhance complete shareholder returns by way of sustainably rising dividends and share worth appreciation. We consider the present share worth doesn’t mirror the intrinsic worth or development potential of the Group,” he added.

Declaring that Airtel was seeing regular development throughout its companies, he mentioned he believed there was extra room for development “given India’s accelerated digital transformation and we intend to remain invested for the long run whereas working with Bharti Enterprises to equalise our efficient stake in Airtel over time”.