News
Singapore-based operator plans to strengthen its existing relationships with Indian and Thai mobile operators.
Singtel plans to invest S$2.47 billion (€1.6 billion/$1.8 billion) to gain larger shares in mobile operators in Thailand and India as part of efforts to broaden its access to mobile markets in Asia and Africa.
The company agreed to buy 21% of Thailand’s Intouch and 7.39% of India-based Bharti Telecom from its majority shareholder Temasek to increase its economic interests in Intouch-owned mobile operator AIS and Bharti Airtel (Airtel).
Bharti Telecom is the holding company of Airtel, which has operations in 18 countries across South Asia and Africa. The acquisitions are subject to minority shareholder and regulatory approval.
“The deal makes sense,” Nicholas Teo, a strategist at KGI Fraser Securities, told Bloomberg. “Their growing footprint in Asia makes them an attractive regional mobile player. This brings economies of scale that allows them to offer better pricing for customers roaming around the region.”
Singtel said the acquisitions are in line with its long-term strategy to increase its exposure to “high-performing associates” in its portfolio of telecom businesses in the region.
Singtel Group CEO, Chua Sock Koong, said Singtel now wants to build on its existing relationships with the two groups: AIS and Airtel have been associates of the group since Singtel acquired stakes in these businesses in 1999 and 2000 respectively.
“This is a unique opportunity for us to deepen our relationships with two great market leaders,” Chua added.
The CEO noted that the groups have a combined mobile customer base of more than 380 million across Asia and Africa.
“Thailand, India and Africa continue to be attractive, high-growth markets for us. As a group, we enjoy great synergies, economies of scale, and collaborative innovation,” she said.
Temasek currently owns more than half of Singtel with a 51% stake. This could rise to 52.27%, Bloomberg noted, following the plan to place Singtel shares with its parent to raise funds for the acquisitions.
