Singapore Telecom has monetised its 1.6% stake in Airtel Africa through a market placement, as part of a capital recycling strategy to focus on new growth areas.
In a statement, the Singtel subsidiary announced it raised net proceeds of approximately SGD150 million (US$110 million) which it claims is “well oversubscribed”. Singtel will continue to hold its 21.7% effective stake in Airtel Arica, which comprises a 17.8% indirect stake through its regional associate Airtel and a 3.9% direct stake.
Singtel chief financial officer Arthur Lang: “We are pleased with the strong interest in the placement. This monetisation underscores our approach to actively pursue asset recycling opportunities and crystallise value from our assets to fund our new growth engines. It will also enhance the liquidity of Airtel Africa shares in the market and allow for more broad-based institutional investor participation."
Lang added Singapore Telecom “remains committed” to the African market in the long term as it possesses potential through a fast-growing market from rapid mobile money and smartphone adoption.
Airtel Africa is the continent’s second-largest operator with a combined mobile customer base of 125 million across 14 countries.
