Merger with Tata unit can only benefit Singtel’s Bharti Airtel

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SINGAPORE (Oct 16): UOB KayHian is maintaining its “buy” on Singapore Telecommunications (SingTel) with a target price of S$4.53 given 14.8% owned Bharti Airtel will gain 44 million mobile subscribers and addition spectrum from its merger with Tata Teleservices’ consumer mobile business.

Bharti Airtel announced on Friday it has agreed to merge with Tata Teleservices’ CMB. Tata Teleservices’ 44 million consumer mobile subscribers will add to Bharti Airtel’s subscriber base of 307 million, bringing Bharti Airtel’s total mobile subscribers to 351 million.

The merger is also conducted on a debt-free and cash-free basis. Tata Teleservices would settle all past liabilities and dues. Bharti Airtel will pay only a small portion of Tata Teleservices’ total unpaid spectrum liabilities — reportedly INR20 billion or S$417.5 million — to the Department of Telecommunications... (Click here to read the full story.)