On Thursday, the telecom operator said that Bharti Airtel promoter Bharti Telecom will buy a 3.33% stake in Singtel for about Rs 12,895 crore within 90 days.

Shares of Bharti Airtel rose 4% in early trade after the development, as Dalal Street investors welcomed Bharti Telecom’s move to buy a stake in the telco. The stock was trading 0.9% higher at Rs 745.80 on the BSE at 9.47 am.

Currently, Bharti Telecom (BTL) is owned by the family of Bharti Group Chairman Sunil Bharti Mittal and Singtel. According to the telco’s regulatory filing, Singtel and Bharti’s direct stake in Airtel will be about 10% and 6%, respectively, after the stake acquisition.

“Bharti and Singtel have agreed to work towards balancing their holdings in Airtel over a while,” the filing said.
Bharti Enterprises and Singtel have been working together for over 20 years. “Over the years, Bharti Airtel Limited (Airtel) has not only acquired a strong pan-India leadership but has also expanded into 16 other countries in Africa and South Asia,” the company said in the filing.

Bharti and Singtel have agreed to balance their stakes in Airtel over a while, the telco said, adding that BTL will diversify such acquisitions to maintain a comfortable level of leverage.