NEW DELHI, May 16:  Singtel on Friday said it has sold about 1.2 per cent of its direct stake in Bharti Airtel for S$2 billion (roughly USD 1.5 billion) in sync with its active capital management approach to optimise its asset portfolio and drive shareholder returns sustainably.

  The transaction was executed via a private placement to international and Indian institutional investors, including existing shareholders of Airtel, Singtel said.

The private placement drew strong interest from existing shareholders and new investors and was well oversubscribed, resulting in both an increase in transaction size as well as tighter final pricing than initial guidance.

A large majority of the transactions were sold to domestic mutual funds and international long-only funds.

“Singtel has sold approximately 1.2 per cent of its direct stake in regional associate Airtel today for S$2.0 billion as part of its active capital management approach to optimise its asset portfolio and drive shareholder returns sustainably,” Singtel said in its statement.

A long-term strategic investor in Airtel for over two decades, Singtel said it has been working with Bharti Enterprises to equalise its effective stake in Airtel in the medium term, according to the company.

Post the transaction, Singtel will hold a 28.3 per cent stake in Airtel, valued at an estimated S$48 billion, and generate an estimated gain of S$1.4 billion. (PTI)