Options for the assets, which could be worth a few billion dollars, include a potential stake sale, partnership with an investor or a sale and lease back, the people said. Deliberations are preliminary and there’s no certainty that the review will lead to a transaction, the people said.
In a statement on Jan 11, Singtel notes that it "regularly reviews its options to optimise its assets and operating model" and that there's no certainty or assurance that any transaction will occur.
"If, and when, there are any material developments that warrant disclosure, Singtel will, in compliance with applicable rules, make further announcements as appropriate," the company adds.
A deal would help Singtel raise cash and boost growth amid increasing investor demand for digital infrastructure businesses, the people said. In October, the company sold a majority stake in the mobile phone towers unit of Optus to pension manager AustralianSuper Pty for about A$1.9 billion ($1.85 billion).
See also: Singtel’s redeveloped Comcentre to be Singapore’s first AI-enabled, 5G+ connected building
Singtel, which offers mobile, broadband and TV services as well as business-oriented solutions for companies, has a presence across Asia, Australia and Africa. In the half year ended Sept. 30, Singtel’s earnings before interest, tax, depreciation and amortization rose 1% to $1.93 billion, while revenue grew 3% to $7.65 billion. In Australia, Optus reported Ebitda climbed 5%, boosted by its mobile business.
Photo: Bloomberg
