Singapore Telecommunications (SingTel) is considering buying the remaining shares it does not own in Indian telecoms services provider SingTel Global, according to the Times of India citing unnamed sources.
The move has been spurred by local…
Singapore Telecommunications (SingTel) is considering buying the remaining shares it does not own in Indian telecoms services provider SingTel Global, according to the Times of India citing unnamed sources.
The move has been spurred by local authorities’ recent decision to remove the cap on foreign investments in telcos.
SingTel has a 74% stake in the JV, which provides international and national long distance phone services. The remaining shares are split between Indian conglomerate Bharti Enterprises and Leela Lace Software.
The newspaper writes that SingTel has approached the Foreign Investment Promotion Board (FIPB) to get approval for the stake increase, backed by Bharti and Leela.
Besides SingTel Global, SingTel is also a shareholder in India’s largest mobile operator, Bharti Airtel, with a 35% stake. The balance is held by Bharti Enterprises.
SingTel and the FIPB were not immediately available for comment.
Since the Indian government abolished the 74% FDI limit in local operators in August, it has been speculated that several foreign companies would try to consolidate their Indian units.
Vodafone may be one of them after it was recently reported that the British company was prepared to spend as much as US$2bn buying out minority shareholders in Vodafone India.
