Singtel shares surge 4.9% to new high on Bharti Airtel sale, talks for data centre deal

In a bourse filing on Friday morning, Singtel acknowledges that it is in talks about STT GDC as part of a consortium

Shares of Singtel surged 4.9 per cent after reports that one of its units will sell US$1.2 billion worth of Bharti Airtel shares.

The telecommunications operator is also in reported talks with global investment firm KKR & Co to fully own ST Telemedia Global Data Centres (STT GDC).

Singtel shares shot to S$4.72 within seconds of market open on Friday (Nov 7), a rise of S$0.22 from its previous close of S$4.50. This marked a new high for the stock.

Pastel on Thursday offered to sell 51 million shares in Indian mobile carrier Bharti Airtel. The transaction will occur on local bourses on Friday, with the settlement expected on Nov 10.

Shares of the telco also rose to a record on Thursday amid talks of a US$3.9 billion data centre deal.

Reuterson Thursday reported that KKR & Co and Singtel are in advanced talks to buy more than 80 per cent of STT GDC, which would give them full ownership. The deal would be worth more than US$3.9 billion.

In a bourse filing on Friday morning, Singtel acknowledged that it is in talks about STT GDC as part of a consortium. However, it said that there was no guarantee of any “definitive or binding” agreement.

The telco also cautioned investors against trading based solely on media reports before it officially announced any such deals.