singtel to buy out allies
SingTel group has approached the Foreign Investment Promotion Board (FIPB) to buy out allies including Bharti Enterprises and Leela Lace Software Solutions (Leela) in its international and national long distance joint venture, SingTel Global. If this happens, Singapore-based telecommunications major SingTel will become the first foreign telecom company to increase its investment in India after the government decided to allow 100 per cent foreign direct investment (FDI) in the sector.
Currently SingTel holds 74 per cent stake in the joint venture company SingTel Global (India) Pvt Ltd through a wholly owned subsidiary SingTel Australia Holding Pte Ltd while Bharti Enterprises, the holding company of Bharti Airtel Ltd, holds 9.9 per cent and Leela India holds the balance 16.01 per cent.
SingTel group is the biggest shareholder in Bharti Airtel with a direct and indirect holding of 32.5%. STAH is an investment holding company and is a wholly-owned subsidiary of SingTel. The application to the FIPB was made last month, sources said, adding that the equity of the Indian promoters will be picked up by STAH. The sources said that the SingTel proposal sent to the FIPB also carries no-objection letters from Bharti and Leela in support of the transaction.
FIPB's nod will surely help bring in fresh funds into the telecom sector. British mobile giant Vodafone is also believed to be preparing to buy minority shareholders from its Indian operations and may spend over $2 billion for the same.
Currently SingTel holds 74 per cent stake in the joint venture company SingTel Global (India) Pvt Ltd through a wholly owned subsidiary SingTel Australia Holding Pte Ltd while Bharti Enterprises, the holding company of Bharti Airtel Ltd, holds 9.9 per cent and Leela India holds the balance 16.01 per cent.
SingTel group is the biggest shareholder in Bharti Airtel with a direct and indirect holding of 32.5%. STAH is an investment holding company and is a wholly-owned subsidiary of SingTel. The application to the FIPB was made last month, sources said, adding that the equity of the Indian promoters will be picked up by STAH. The sources said that the SingTel proposal sent to the FIPB also carries no-objection letters from Bharti and Leela in support of the transaction.
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