Singapore-based telecom firm Singtel has decided to offload a 3.3% direct stake in Bharti Airtel. This business decision is expected to give USD 1.6 billion to Singtel. It is seen as a great asset monetization push by business analysts. As per sources, Singtel will use the money gained from this business action for effective 5G roll-out and to make investors happy.

“As long-term strategic investors and partners, the value of our stakes in our regional associates has risen substantially over the years but has not been properly reflected in our share price,” said Singtel’s group CFO Arthur Lang. The stake sale will help to address that gap “by illuminating the sizable value of our holdings in Airtel,” he said.

It is interesting to note here that Singtel has been associated with Bharti Airtel since 2000 and has forged business relationships to bring the telecom revolution. Now it is trying to cash on this relationship to boost its business prospects. Upon completion of this deal, Singtel will hold a 29.7% stake in Bharti Airtel (19.2% indirect & 10.5% direct) valued at USD 16 billion.

“Bharti Airtel and Singtel have decided to make some directional shifts in their respective holdings in Airtel. We have agreed to work towards equalizing their stake in Airtel over a period of time,” asserts one of the top employees of Bharti Airtel.