Bharti Enterprises is likely to exit from SingTel Global, an international and national long distance joint venture in India.
Bharti Enterprises has 9.9 percent stake in SingTel Global.
According to media reports, SingTel group, which also has 32.5 percent equity stake in Bharti Airtel, has approached the Foreign Investment Promotion Board (FIPB) India for buying the stake of Bharti Enterprises’ 9.9 percent stake and Leela Lace Software Solutions’ 16 percent stake in SingTel Global.
Once approved, SingTel will become the first global telecom major with 100 percent stake in an Indian telecom service provider. The move follows the India government’s decision to permit 100 percent FDI (foreign direct investment) in telecom sector from the 74 percent earlier.
SingTel owns 74 percent in SingTel Global through SingTel Australia Holding, Singapore (STAH) and INS Holdings (INS).
According to the reports, SingTel did not disclose how much it would invest in acquiring the stake. TRAI data suggests that gross revenue of ILD service providers in India was Rs 3,141 crore during the quarter ended March. Cumulative adjusted gross revenue (AGR) of ILD service providers was Rs 1,277 crore.