SingTel is planning to extend a credit line of as much as US$3.6 billion to partner operator Bharti to support the Indian operator’s proposed merger with South Africa’s MTN, reports Dow Jones Newswires. The report, which cites unnamed sources, says SingTel could end up owning as much as 12 percent of MTN. The operator currently owns 30.4 percent of Bharti – India’s largest mobile operator – though this is expected to be reduced to around 20 percent if the merger with MTN is pushed through. In its official statement on the proposed MTN merger last week, Bharti noted that SingTel would “continue to be a strategic partner and significant shareholder after the implementation of the potential transaction.” According to the Dow Jones report, SingTel itself emphasised its active role in the discussions this week, noting that it “would be actively involved in due diligence and key aspects of the transaction.”

Aside from its wholly-owned subsidiaries in Singapore and Australia (Optus), India is SingTel’s most significant market, with Bharti adding 31.9 million new mobile customers in the year to 1Q09. SingTel has reportedly been looking for an investment opportunity on a similar scale for some time so is deemed to be upbeat on the Bharti-MTN merger, which would expand its business into Africa and the Middle East. The merger would create a telecoms group with combined revenues of over US$20 billion and a customer base of over 200 million. Exclusive talks between Bharti and MTN are ongoing until the end of next month.