SingTel - CGSI Research 2024-03-07: Raising ~S$1bn From Bharti Stake Sale

• SingTel announced the sale of a 0.8% stake in Bharti Airtel (BHARTI IN) to GQG Partners (GQG AU). This brings SingTel’s effective stake in Bharti to 29.0% (from 29.8% at end-2023).

S$950m raised from sale of 0.8% stake in Bharti Airtel

• - Read this at SGinvestors.io -
• We view the stake sale positively given Bharti’s elevated valuation multiples (34x FY25F P/E, according to Bloomberg consensus) and strong share price performance (+58% over the past 12 months).

More value set to be unlocked in the medium term

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• divestment and redevelopment of Comcentre.
• With the 0.8% Bharti stake sale completed, this leaves ~S$3bn in value remaining to be unlocked.
• Over the past year, SingTel has cumulatively unlocked ~S$1.6bn in capital from divestments;
  1. sale of 0.8% stake in Bharti Airtel (~S$950m),
  2. regional data centre stake sale (~S$1.1bn over three years, we assume ~S$100m has been recorded since the announcement in Sep 2023),
  3. sale of cybersecurity subsidiary Trustwave (~S$275m), and
  4. sale of 3.9% direct stake in Airtel Africa (~S$250m).

Possibility of gearing reduction and higher shareholder returns

• Read more at SGinvestors.io.

Above is an excerpt from a research report by CGSI Research.
Clients of CGS International may access the full PDF report @ https://itrade.cgsi.com.sg/.

Read also CGSI's most recent report:
2025-06-17 Singtel - Valuations Cap Upside From Attractive Yields.

Previous report by CGSI:
2025-05-22 Singtel - In-line FY25 Results; Asset Recycling Lift.

Price targets by 5 other brokers at Singtel Target Prices.

Listing of research reports at Singtel Analyst Reports.

Relevant links:
Singtel Share Price History,
Singtel Announcements,
Singtel Dividend Payout Dates & Corporate Actions,
Singtel News