Singtel unit sells stake in Airtel Africa for $110.6m

Singapore Telecom International, a unit of Singtel, said it has sold a 1.6% stake in Airtel Africa for S$150 million (US$110.6 million) as part of its capital recycling strategy.

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The realized gain of nearly US$25.1 million on the divestment will be logged in Singtel’s retained earnings on the balance sheet. Following this transaction, Singtel will hold a 21.7% stake in Airtel Africa – consisting of a 17.8% indirect stake through its regional associate, Airtel, and a 3.9% direct stake.

This deal underscores Singtel’s plans to pursue opportunities for asset recycling and fund new growth engines. It will also increase the liquidity of Airtel Africa shares in the market and allow for more broad-based participation from institutional investors.

Airtel Africa, the country’s second-largest telecom operator, offers telecom solutions, including mobile voice, data, and mobile money services. Airtel has a total mobile customer base of over 125 million across 14 countries.

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“We remain positive and committed to Africa in the long run. Airtel Africa serves a young demographic in a fast-growing market and is well-positioned to benefit from rapid smartphone and mobile money adoption with the rise of the continent’s digital economy,” said Singtel chief financial officer Arthur Lang.

Earlier this month, NCS, the information and communications tech services arm of Singtel, acquired Australian IT services major The Dialog Group in a US$238.9 million deal, which is NCS’ largest acquisition to date.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.36.