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Sheng Siong
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Joelton
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31-Jul-2026 10:19
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Singtel confirms talks for Optus stake sale reportedly worth US$1.4 billion [SINGAPORE] Singtel on Thursday (Jul 30) confirmed that it is in discussions with &ldquo interested parties&rdquo to sell a stake in its wholly owned Australian unit Optus, though the telco cautioned investors that a transaction is far from guaranteed. This comes after the Australian Financial Review (AFR) on Wednesday reported that New Zealand-based infrastructure investor Morrison was in talks to buy a minority stake valued at more than A$2 billion (US$1.4 billion). Morrison has also secured a seven-week exclusivity period to finalise the potential purchase of a more than 30 per cent stake in Optus, added AFR. The company reiterated its strategic shift first announced on May 21, when it shared that it was open to bring in a &ldquo like-minded local partner&rdquo to ensure that Optus remains a strong alternative operator in the Australian telecommunications market. The topic of a potential stake sale was brought up again during the company&rsquo s annual general meeting (AGM) on Wednesday. &ldquo The main objective is to strengthen Optus&rsquo long-term strategic resilience, and this requires a partner that shares our commitment to maintaining Optus as a strong, credible alternative operator providing a reliable and trusted critical service to Australia,&rdquo said Yuen Kuan Moon, group CEO of Singtel. Nonetheless, operating with a minority partner is &ldquo not a new operating model&rdquo for Singtel, said Yuen. He cited the telcos&rsquo operating model in Indonesia, Thailand, the Philippines and India as examples of operating with a local partner. By operating with local partners, Singtel is able to &ldquo develop the resilience and capabilities&rdquo , he added. A successful deal will end Singtel&rsquo s 25-year run as the sole owner of Australia&rsquo s second-largest wireless carrier. The search for a minority investor follows a tumultuous period for Optus, which has been battered by severe reputational and financial damage. The subsidiary has faced intense political and regulatory scrutiny following a massive 2022 cyberattack and a catastrophic nationwide network outage last year that disrupted critical emergency services. Optus is currently undergoing a multi-year transformation programme following the &ldquo triple-zero&rdquo outage. &ldquo There&rsquo s still work to be done, but I&rsquo m confident that a refreshed leadership team can deliver its goal of restoring Optus to a leading challenger telco in Australia,&rdquo said Yuen during the AGM. In its May disclosure, Singtel indicated that a local partner holding a &ldquo meaningful minority stake&rdquo could bring complementary expertise to improve service provision, bolster operational resilience and help restore public trust. Citi Research analysts Arthur Pineda and Luis Hilado in May said that the onboarding of a strategic partner for Optus could &ldquo raise further proceeds&rdquo if successful. No adverse impact DBS Group Research analyst Sachin Mittal does not expect any &ldquo adverse impact&rdquo on group earnings following a potential partial divestment of Optus. He elaborated that interest cost savings from a potential A$2 billion should offset the earnings loss from the partial divestment of Optus. &ldquo Optus&rsquo return on invested capital has been quite low at 2 to 3 per cent due to high capital expenditure and depreciation leading to low free cash flow and net profit,&rdquo he said. Chris Muckensturm, analyst at Bloomberg Intelligence, added that the divestment of Optus could &ldquo prompt an upgrade&rdquo to Singtel&rsquo s S$9 billion capital recycling programme. Singtel has already achieved S$6.8 billion from capital recycling, following its partial divestment of Gulf Development for approximately S$1 billion. Muckensturm suggested that the funds raised from capital recycling might be used for fund its S$740 million acquisition of STT GDC, as well as its AI outlays and shareholders returns. Remains committed to Australia Despite talks of a potential divestment, Singtel said that it remained &ldquo committed to Australia for the long term&rdquo , noting that Optus has been part of the group for more than 25 years. Optus recently booked a full-year loss after incurring hundreds of millions of dollars in fines and remediation costs related to its network and security failures. That said, Yuen remains positive on the Australian telco. &ldquo There is strong potential for growth in Australia, given the positive industry dynamics, and the consecutive years of strong earnings before interest and tax growth is a testament to that,&rdquo he said. Singtel said that it will update the market of material developments. |
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tongphlp
Supreme |
30-Jul-2026 11:27
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Lion Befrienders..
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MrBear12
Supreme |
30-Jul-2026 10:37
Yells: "Cast all our anxieties on Jesus for He cares for us" |
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no.
In due time we will have our own LASDAQ. Or a BASDAQ. L for Lion and B for... no points for guessing rightly
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tongphlp
Supreme |
30-Jul-2026 10:33
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is Nasdaq the be all end all destination for sgx companies? all they know and want is to list on nasdaq...
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Joelton
Supreme |
30-Jul-2026 09:56
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Singtel explores Nasdaq-SGX dual listing for data centre arm Nxera, local data centre Reit [SINGAPORE] Singtel : Z74 -0.22% on Wednesday (Jul 29) said that it was considering a dual listing on Nasdaq and the Singapore Exchange (SGX) for its data centre arm Nxera, as well as listing a data centre real estate investment trust (Reit). However, both options remain at an exploratory level, with no final decision on scale, date and structure, the group said during its annual general meeting (AGM) at the Sands Expo and Convention Centre. Singtel first floated the idea of a Reit listing in May during an earnings call. At the time, group chief financial officer Arthur Lang said that such a move &ldquo enables financial flexibility&hellip strengthens returns and supports long-term value creation&rdquo . This comes as the telco expands its capital recycling model to increase shareholder value, as part of its &ldquo Singtel28&rdquo plan. During the AGM, Singtel group CEO Yuen Kuan Moon did not rule out a Nasdaq-SGX dual listing of Nxera. &ldquo We will consider (a Nasdaq listing), and I think we are just in the exploratory stage,&rdquo he told the roughly 900 people at the event. &ldquo No decision has been made yet. So we will see the evaluation, and then we will... come back in due time to make a decision.&rdquo By the end of 2026, Nxera&rsquo s data centre capacity across Singapore, Malaysia, Thailand and Indonesia will more than double to over 200 megawatts. Yuen expects Singtel&rsquo s data centre business to grow to more than S$300 million in earnings before interest, tax, depreciation and amortisation by 2030. Nonetheless, he reaffirmed the group&rsquo s discipline in its in data investments. &ldquo We will not commit to building (data centres) unless we see there are actually real customers, or customers who are willing to take at least 30 to 50 per cent of our capacity before we even embark on building a new data centre,&rdquo he said. Auditor KPMG reappointed despite scrutiny Singtel&rsquo s reappointment of KPMG as its auditor was a topic of contention among shareholders. This was despite the discovery that KPMG Australia staff had shared sensitive information regarding Optus, Singtel&rsquo s Australian unit, with another team from the audit firm. That team was bidding for a contract with Telstra, a rival communications player. KPMG Australia has since acknowledged that client information was inappropriately shared, and sanctioned the employees involved. The three individuals directly involved are no longer working on the Optus account, noted John Arthur, chairman of the Optus board, at the AGM. Still, he defended the decision to reappoint KPMG as auditor. &ldquo This is not the right time to undertake a change (in auditor),&rdquo he said, adding that any replacement would increase the burden on Optus&rsquo management. Optus management is undergoing a multi-year transformation following a major &ldquo Triple Zero&rdquo outage in 2025 &ndash in which customers were unable to call emergency services in Australia. An independent review linked two fatalities to emergency calls that could not connect during the outage. Singtel audit committee chairman Gautam Banerjee said that the group will keep monitoring KPMG&rsquo s performance in both Singapore and Australia. He added that Singtel &ldquo will have made a decision as to whether we will continue with them, or whether we will have a full review and change auditors&rdquo . The resolution to reappoint KPMG received 99.79 per cent of the votes cast at the AGM. STT GDC deal to close soon In February, Singtel and a KKR-led consortium agreed to acquire an 82 per cent stake in data centre operator ST Telemedia Global Data Centres (STT GDC), with Singtel eventually holding 25 per cent of the entity. &ldquo The transaction is expected to close in the next two months, and we will have more to share on the strategic options available (then),&rdquo said Yuen. Besides the STT GDC acquisition, the telco' s other project and company investments include a 22 per cent equity stake in Singapore Post : S08 +1.43% (SingPost). Responding to shareholder queries, Yuen reiterated the group&rsquo s support for SingPost as the postal services company continues its multi-year transformation. Singtel believes &ldquo there&rsquo s definitely value in SingPost&rdquo , he said, adding that the company&rsquo s value &ldquo may be even higher than (what it is) today&rdquo after the transformation. Another shareholder asked about the group&rsquo s plans for digital bank GXS, which Yuen said is &ldquo not forgotten&rdquo . Lang &ndash who also sits on the board of GXS &ndash said that while the digital bank&rsquo s Indonesia and Malaysia units are performing well, the Singapore business has been particularly challenging. The Singapore unit, GXS Bank, reported a S$132.1 million loss in the 2025 financial year. The larger business, comprising both GXS Bank and the Malaysian unit GXBank, reported a S$208.1 million loss. &ldquo It is challenging primarily because of the competitive landscape here in Singapore,&rdquo Lang noted. Nonetheless, he highlighted that the Singapore business has turned positive on an earnings before interest, tax, depreciation and amortisation level. It is expected to move into the black on a net profit after tax basis by the end of 2026 or the start of 2027. Lang expects GXS to become profitable on the group level by FY2028. All 11 resolutions, including the reappointment of chairman Lee Theng Kiat, were passed during the AGM. Shares of Singtel finished Wednesday 1.8 per cent or S$0.08 higher at S$4.61. |
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Alignment
Elite |
25-Jul-2026 23:59
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If list then sell shares then pay back cash to shareholders then that would be nice. | ||||
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Joelton
Supreme |
25-Jul-2026 13:59
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Singtel supports potential listing of its data centre business in India, it tells shareholders SINGAPORE &ndash Singtel said it is &ldquo supportive&rdquo of a potential listing of its data centre business in India to fund further expansion of its digital infrastructure business. The telco was responding to questions from shareholders and the Securities Investors Association (Singapore), or SIAS, ahead of its annual general meeting on July 29. In a filing with the Singapore Exchange on July 24, Singtel also answered questions on its capital management strategy and other matters. In response to a question on the strategy and potential returns from Singtel&rsquo s 25 per cent stake in ST Telemedia Global Data Centres (STT GDC), the telco said it views the data centre giant as a strategic investment rather than a passive financial holding, and its minority stake is a &ldquo strategic choice&rdquo . Singtel&rsquo s data centres in India are part of the STT GDC business, which the telco acquired as part of a consortium with global investment firm KKR for $13.8 billion in February. The transaction is expected to close in the early part of the second half of 2026. By investing in STT GDC, Singtel gains exposure to the digital infrastructure sector both regionally and globally. As the investment will be equity-accounted, Singtel can benefit from STT GDC&rsquo s growth without including the company&rsquo s debt or financial results in its own consolidated accounts, it said. Singtel added that this structure limits the impact on its earnings per share while retaining its growth potential, and also allows the telco to execute strategic actions in the future as the data centre sector continues to evolve. This could entail a potential listing of STT GDC&rsquo s India business, which Singtel said would capitalise on &ldquo strong public market demand&rdquo for digital infrastructure and increase its valuation. On its subsidiary Digital InfraCo&rsquo s data centre business Nxera, Singtel said it expects earnings to continue growing in financial year (FY) 2027 as its data centre in Tuas ramps up, with customers progressively starting operations. This will support the continuous growth of Nxera&rsquo s earnings before interest, taxes, depreciation and amortisation (EBITDA) to more than $300 million by the end of 2028. A question was raised about Singtel&rsquo s ability to mitigate environmental damage, water scarcity and pressure on power supplies, among other adverse effects, as it pursues data centre growth. Singtel replied that it recognises the concerns that have been raised globally about the impact of data centres on electricity networks, water resources and local communities. &ldquo These are important issues that must be addressed, and we believe the long-term success of AI infrastructure depends on ensuring that people benefit from its development, not simply from the digital services it enables.&rdquo The telco will work with governments, utilities and local partners from the earliest stages of development to identify the most appropriate energy and water solutions for each project, ensuring that they align with local infrastructure plans and community needs. It will also seek opportunities to invest in dedicated and lower-carbon energy solutions that complement existing energy infrastructure, expand overall system capacity and improve resilience. Singtel&rsquo s capital management strategy Singtel also fielded questions on its capital management strategy. A shareholder asked how the telco determined its medium-term asset recycling target of $9 billion and whether it would make adjustments according to changes in market conditions. Singtel said that the asset recycling target is &ldquo dynamic rather than a fixed cap&rdquo and is already adaptable to changing conditions, as demonstrated in the telco previously raising its target from $6 billion to $9 billion in May 2025 as opportunities evolved. Its asset recycling target reflects its &ldquo continued focus on active capital management and disciplined capital allocation&rdquo and is intended to provide financial flexibility to invest in future growth opportunities while supporting sustainable shareholder returns. There were also questions on whether the telco would consider a share buyback directly from shareholders, and pay a higher dividend. Singtel replied that since it launched its $2 billion value realisation share buyback programme in May 2025, it has bought around $760 million worth of shares, amounting to 40 per cent of the programme, from the open market and subsequently cancelled them. &ldquo Cancelling the shares reduces the total number of shares outstanding, which enhances earnings per share (EPS) and allows all remaining shareholders to benefit from a larger ownership interest in the company,&rdquo it said. Upon full execution of the $2 billion buyback, on an adjusted basis and based on financial year 2026&rsquo s net underlying profit, this would lead to a permanent 3 per cent accretion in underlying EPS and puts Singtel on a higher EPS and dividends per share trajectory. It added that open market share buybacks are conducted in accordance with the Singapore Exchange&rsquo s listing rules, with purchases capped at not more than 5 per cent above the average closing market price over the last five market days. In response to a question on whether its performance share plan (PSP) will reduce overall shareholder value and affect the interests of minority shareholders, Singtel said the annual PSP grants are capped at 0.5 per cent of its total issued shares. The PSP is a long-term incentive system designed to reward key executives and align their performance with shareholder interests through conditional share awards, performance criteria and vesting periods. Total outstanding PSP awards over the last three years represent around 0.3 per cent of Singtel&rsquo s issued shares, the telco said. It noted that it has historically settled vested PSP awards using treasury shares acquired through share buybacks, rather than issue new shares. Therefore, existing shareholders&rsquo ownership has not been diluted by PSP vesting. Shares of Singtel closed on July 24 at $4.39, down nearly 1.6 per cent. |
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Battle123
Elite |
01-Jul-2026 16:12
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still on uptrend right |
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stockpicker
Master |
01-Jul-2026 10:10
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The Market appears to treat this as a good news.
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Joelton
Supreme |
01-Jul-2026 09:50
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Singtel weighs REIT as long-term funding option for AI infrastructure Singapore Telecommunications (Singtel) is considering a real estate investment trust (REIT) or another permanent capital vehicle as it prepares to finance growth in data centres and sovereign artificial intelligence (AI) beyond its Singtel28 plan. It is assessing longer-term funding structures that could support continued asset injections, alongside capital partnerships, private funding, project debt, asset-recycling proceeds and its balance sheet. &ldquo We are also considering another capital lever &mdash permanent capital pools that we can continuously tap for longer-term needs. This could be in the form of a public listing of a real estate investment trust, in which we can continue to inject assets,&rdquo says Arthur Lang, Singtel group chief financial officer, in the company&rsquo s FY2026 annual report. Funding the next phase The financing plans come as Singtel increases investment in its regional data centre platform Nxera and RE:AI, its sovereign AI cloud business. Capital expenditure is expected to rise to about $3 billion in the year ending March 2027 from $2.5 billion a year earlier. About $1.2 billion will be growth capital, mainly for Nxera and RE:AI, with around $700 million of that amount fully funded. A significant portion of Nxera&rsquo s funding will be supported by Singtel&rsquo s capital partnership with KKR & Co., shares Lang. RE:AI investments are underpinned by customer contracts, which he says would reduce the risk of holding unused graphics-processing units and support future recurring revenue. Singtel will also seek external private capital and project-level debt. Lang says the group&rsquo s operating-company earnings, regional-associate contributions and asset-recycling programme would remain central to funding growth while supporting dividends. Building a digital infrastructure group The funding strategy supports group chief executive officer Yuen Kuan Moon&rsquo s effort to shift Singtel towards digital infrastructure and technology services. &ldquo We see ourselves evolving from a largely traditional telco group into a global player in digital infrastructure and services, with a strong Asian focus. Asia sits at the very heart of our business and identity and is the source of our long-term growth opportunities,&rdquo says Moon in the same annual report. Connectivity will remain fundamental because AI and other digital services depend on secure and resilient networks. However, it will increasingly be one part of a broader business spanning data centres, cloud infrastructure, enterprise technology and AI services, he notes. The company plans to use its acquisition of STT GDC, in partnership with KKR, to expand its data centre presence beyond Southeast Asia. Together with Nxera, the platforms would give Singtel a combined design capacity of about 2.8 gigawatts upon completion of the transaction. Singtel says STT GDC and Nxera will operate independently, allowing it to pursue different market strategies while serving hyperscale cloud providers and enterprise customers. Energy targets alongside AI growth The expansion of AI-ready infrastructure also places greater emphasis on Singtel&rsquo s energy and emissions targets. The company has set goals to cut Scope 1 and 2 emissions by 55% and Scope 3 emissions by 40% from an FY2023 baseline. Its Scope 1 and 2 emissions had fallen 28.3% as of March 31, while 29.5% of its electricity consumption was backed by renewable sources. Singtel says it is incorporating energy efficiency, renewable energy and resource optimisation into the design and operation of its data-centre infrastructure as it expands capacity for AI workloads. AI strategy and workforce Singtel describes its AI strategy as operating across three roles: adopter, provider and enabler. The group is using AI internally to improve workflows and operations, while NCS develops enterprise AI systems and Digital InfraCo provides the underlying infrastructure through data centres, cloud capacity and networks. That approach is paired with Singtel&rsquo s HI × AI × CI framework &mdash human intelligence, artificial intelligence and culture intelligence. The company says the model combines human judgement, accountability and empathy with AI-driven productivity and innovation, supported by workplace practices intended to build trust and help staff adapt to new ways of working. More than 90% of group employees had completed foundational AI training as of March 31, 2026. Singtel aims for all employees to complete basic AI literacy training, while targeting 25% of its workforce to become AI practitioners and 2.5% to become AI specialists. Returns remain part of the plan Lang says Singtel intends to retain its three-pronged shareholder-return framework as it steps up investment. The company will continue targeting a core dividend payout of 70% to 90% of underlying net profit. It also plans to pay a value-realisation dividend of 3 cents to 6 cents per share through FY2030 and execute up to $1 billion of its $2 billion share-buyback programme in FY2027. Singtel has recycled close to $6 billion of assets since April 2024, exceeding half of its $9 billion medium-term target. The remaining proceeds will be allocated between shareholder returns and growth investments, including the STT GDC acquisition, says Lang. The proposed REIT or another permanent capital vehicle would provide Singtel with another way to fund capital-intensive infrastructure expansion as it approaches the final year of Singtel28, while preserving flexibility in how it recycles assets and deploys capital. As at 11 am, shares in Singtel are trading at $4.44 flat. |
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Joelton
Supreme |
01-Jul-2026 09:49
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Singtel CEO&rsquo s pay falls 17% to S$6.8 million in FY2026 on Optus incident and Singapore outages [SINGAPORE] Singtel CEO Yuen Kuan Moon had his pay slashed 16.9 per cent to S$6.8 million for FY2026, owing to the triple zero incident at its Australian unit Optus and Singapore network outages. His compensation for FY2025 stood at S$8.2 million. &ldquo In assessing the performance for the year ending Mar 31, 2026, and determining the appropriate remuneration outcome for the group CEO, the Board took into account the Optus Triple Zero incident and the Singtel Singapore network outages during the year,&rdquo Singtel said in its annual report released on Tuesday (Jun 30). The remuneration of other key executives, excluding the CEO, also fell 11.9 per cent to S$25.9 million, for the same reasons. In September last year, an Optus outage following a network upgrade resulted in Triple Zero calls &ndash the emergency number used for life-threatening situations and emergencies &ndash being blocked. This led to two deaths, a review noted. Separately, Singtel&rsquo s Singapore users were affected by multiple network outages in March. The largest outage on Mar 16 resulted in users not having access for more than six hours. &ldquo In response (to the Triple Zero incident and Singapore outages), the Group remains focused on restoring customer trust, enhancing service reliability, and strengthening operational resilience across its businesses,&rdquo it added. Cuts despite strong financial showing The cuts in remuneration come even though the telco has seen a strong financial showing in FY2026. The group&rsquo s net profit rose 39.5 per cent to S$5.6 billion, from S$4 billion in 2025. This was boosted by S$2.84 billion in net exceptional gains, mainly from Airtel stake sales, and partly offset by various provisions largely from Australia. Underlying net profit for the telco rose 12 per cent to S$2.8 billion, compared to the previous year. The group&rsquo s asset recycling strategy, Singtel28, recently hit S$6.8 billion against its S$9 billion mid-term recycling target, following its sale of S$1 billion of shares in Thai energy developer Gulf Development. Shares of Singtel : Z74 -0.68% fell 0.2 per cent or S$0.1 at S$4.43, as at 10.20 am on Tuesday. |
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Battle123
Elite |
27-Jun-2026 13:58
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Gd news rite But price dont gostan hor We waiting to fly to the moon leh |
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Joelton
Supreme |
27-Jun-2026 11:31
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Singtel&rsquo s Thai associate is its new divestment tap to fund capex, dividends and buybacks Singapore Telecommunications (Singtel) has tapped another avenue for a cash gush to help fund capex and cheer shareholders. Since August 2022, the telco, which owns significant stakes in various mobile operators across the region, has been regularly trimming its stake in Bharti Airtel, netting $1&ndash $2 billion with every share sale. On June 23, Singtel announced it had sold a third of its 7.7% stake in Thai-listed Gulf Development, raising around $1 billion in proceeds and booking cumulative gains of $140 million. With the sale, Singtel has monetised some $6.8 billion of the $9 billion mid-term capital recycling target, which is a key plank of its Singtel28 plan to sweat its capital harder. Proceeds from the sale of assets are used to fund capex for new growth segments, pay special dividends to shareholders and buy back shares. Recycling capital To recap, Singtel received its 7.7% stake in Gulf Development in 2025 following the amalgamation of Intouch Holdings and its largest shareholder, Gulf Development, which helped simplify Singtel&rsquo s shareholding in its Thai associate AIS. The merger removed Intouch as the intermediary holding company and created a new entity, Gulf Development, with a market cap exceeding THB950 billion ($37 billion). Group CFO Arthur Lang calls the partial sale of its shares in Gulf Development &ldquo just one of many levers in Singtel&rsquo s capital management arsenal&rdquo to consistently return capital to shareholders and to fund the development of the company&rsquo s growth engines. &ldquo This gives us considerable ability to fund and sustain our value realisation dividend, value realisation share buyback as well as digital infrastructure investments, putting us on track to deliver sustainable yield and growth over the coming years,&rdquo says Lang. This divestment announcement came amid a post-results drop in the company&rsquo s share price. From a peak of $5.21 on March 20, it traded as low as $4.21 on June 8, then recovered slightly to $4.41 on June 24. Lang notes that Singtel&rsquo s holding company discount has narrowed significantly since the implementation of Singtel28 two years ago, when the share price was below $2.50. &ldquo We still believe that the current market valuation does not fully reflect the long-term value of the group, given the strength of its core businesses, digital infrastructure and services assets and its regional associates,&rdquo he adds. In any case, Singtel, which has a $2 billion share buyback programme in place, has been taking advantage of the lower prices in recent weeks to steadily buy back its own shares. As of June 22, Singtel has spent $681 million, or 34% of the $2 billion, to buy and cancel 148.8 million shares. Upon full execution of the buyback, on a pro forma basis using FY2026 underlying net profit, this would result in a permanent 3% accretion in underlying earnings per share. &ldquo Our share buyback programme is a value-accretive use of capital to enhance the value of our shares and signal its upside potential,&rdquo says Lang. What analysts say In response to the sale of shares in Gulf Development, Sachin Mittal of DBS Group Research has maintained his &ldquo buy&rdquo call on Singtel and set a target price of $5.46, noting that this deal is drawn from the same playbook as the one the company is using with Bharti Airtel. He calculates that Singtel&rsquo s 7.7% stake in Gulf Development is worth around $2.8 billion, equivalent to some 4% of its own market cap &mdash indicating that this is &ldquo a modestly sized but non-trivial&rdquo portfolio asset. &ldquo While Singtel has not disclosed the specific use of proceeds, this is consistent with management&rsquo s strategy of unlocking value to fund growth capex for the data centre business,&rdquo says Mittal. He notes that of the $1.2 billion in growth capex for FY2027, $0.7 billion is already funded by customer advances, with the remaining $0.5 billion potentially funded by this sale. &ldquo This suggests that another $0.5 billion can go towards value realisation dividend and buybacks,&rdquo says Mittal, noting that Singtel&rsquo s projected yield is around 4.2%. Hussaini Saifee of Maybank Securities says that beyond Gulf Development, Singtel retains several visible capital-recycling &ldquo buckets&rdquo . First, Singtel has already indicated that it is looking for a local partner for Optus, its Australian unit. Next, more proceeds can be booked by further trimming in Bharti Airtel, which might benefit from &ldquo pending&rdquo hikes in mobile tariffs, says Saifee, who has kept his &ldquo buy&rdquo call and $5 target price. Also, he points out that Jio&rsquo s IPO, a rival mobile operator in India, will provide a &ldquo positive reference point&rdquo . Jio is being listed at 13 times forward EV/Ebitda, versus 10 times which Bharti Airtel now fetches. &ldquo For Singtel, this matters as 34% of our sum-of-the-parts comes from Bharti Airtel,&rdquo he says. Another &ldquo bucket&rdquo could come from a REIT that Singtel is looking to list &mdash part of a move described by Lang as creating &ldquo permanent capital pools&rdquo . In addition, Singtel and KKR are in the midst of taking full control of STT Global Data Centres and an IPO of its India business has been flagged. Meanwhile, new growth is seen to come from Singtel&rsquo s GPU-as-a-service business under the RE:AI brand, which Saifee, who has a &ldquo buy&rdquo call and $5 target price, estimates can generate revenue of more than $300 million and some $100 million of ebit when the first phase is ramped up. |
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Joelton
Supreme |
24-Jun-2026 09:29
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Mittal of DBS maintains ' buy' on Singtel on sale of Gulf Development stake Sachin Mittal of DBS Group Research has maintained his " buy" call on Singapore Telecommunications and target price of $5.46 after news that it has put up a third of its stake in an associate in Thailand for sale, potentially fetching proceeds of some $1 billion. According to Mittal, Singtel is offering 416 million Gulf Development shares for sale at an indicative price range of Bt58.80-60.00, implying a discount of 2-4% to Monday' s closing price of Bt61.25. This tranche of shares, equivalent to 2.78% of Gulf Development' s total capital, is 36% of what Singtel now owns. On completion of the sale, Singtel' s stake in Gulf Development will be reduced from 7.73% to 4.95%. Mittal notes that there is a 90-day lockup on the remaining stake, which means Singtel will retain a residual position in the near term rather than fully exit. At Gulf Development' s current prices, Singtel' s 7.73% stake is worth around $2.8 billion, equivalent to some 4% of Singtel' s own market cap - indicating that this is " a modestly sized but non-trivial portfolio asset," says Mittal. According to the analyst, proceeds from the sale will be partly used for funding growth capex and partly for dividends and buyback programme. This sale, when done, will bring the total value realised by Singtel from divestments since April 2024 to around $6.8 billion, versus Singtel&rsquo s mid-term asset recycling target of $9 billion by FY2028. The sale of Gulf Development shares by Singtel, observes Mittal, is similar to what it has been doing at Bharti Airtel, where it has regularly trimmed its stake in the last few years. Proceeds from the divestments were recycled to fund capital returns and reinvestments into higher-growth digital infrastructure assets such as data centres. " While Singtel has not disclosed the specific use of proceeds, this is consistent with management' s strategy of unlocking value to fund growth capex for data centre business," says Mittal. He notes that out of the $1.2 billion growth capex in FY2027, $0.7 billion is already funded by advances paid by customers, with the remaining $0.5 billion potentially funded from this sale. " This suggests that another $0.5 billion can go towards value realisation dividend and buybacks," says Mittal, noting that Singtel' s projected yield of around 4.2%. Singtel shares traded at $4.31 as at 10.09 am, down 1.15%. |
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Joelton
Supreme |
24-Jun-2026 09:28
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Singtel sells S$1 billion in Gulf Development shar [SINGAPORE] Singtel : Z74 -0.69% has sold 2.8 per cent of its stake in Thailand energy developer Gulf Development for about S$1 billion, it said on Tuesday (Jun 23). The transaction was executed via a private placement to institutional investors, and will result in cumulative gains of some S$140 million in equity, the group noted. After the deal, Singtel will still hold a 4.95 per cent stake in Gulf Development valued at an estimated S$1.8 billion. &ldquo Gulf Development&rsquo s share price has performed strongly since listing, providing an attractive opportunity for Singtel to crystallise value and reallocate capital towards growth and drive shareholder return,&rdquo said Arthur Lang, chief financial officer of Singtel. The telco received a 7.7 per cent stake in Gulf Development in 2025, following the amalgamation of Intouch Holdings and its largest shareholder Gulf to simplify Singtel&rsquo s shareholding in its Thai associate AIS. Lang emphasised that Thailand remains a key market for Singtel, and the telco will continue having a strong partnership with Gulf Development through its joint investment in AIS and their data centre venture GSA. Closer to capital recycling target The transaction is the latest under Singtel&rsquo s capital recycling programme Singtel28, which has now unlocked S$6.8 billion. Announced in 2024, Singtel28 is a growth plan that would shift capital towards the company&rsquo s growth areas and raise dividends. The initial asset recycling target of S$6 billion has since been raised to a S$9 billion mid-term target. &ldquo Today&rsquo s transaction is just one of many levers in our capital management arsenal to consistently return capital to our shareholders and to fund the development of our growth engines,&rdquo said Lang. &ldquo This gives us considerable ability to fund and sustain our value realisation dividend, value realisation share buyback as well as digital infrastructure investments, putting us on track to deliver sustainable yield and growth over the coming years.&rdquo |
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Joelton
Supreme |
24-Jun-2026 09:22
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Singtel&rsquo s Australian unit prices S$200 million 10-year fixed-rate notes at 2.84% [SINGAPORE] Mainboard-listed telco Singtel : Z74 -0.23% on Tuesday (Jun 23) said that its wholly owned Australian subsidiary, Singtel Optus, has priced S$200 million 10-year fixed-rate notes at 2.84 per cent. The notes will be issued on Jun 30, 2026, and mature on Jun 30, 2036. They will be drawn down from the three billion euro (S$4.4 billion) medium-term note programme of Optus&rsquo financing and treasury arm, Optus Finance. In a bourse filing, Singtel said the issue is part of its long-term financing strategy and will extend the debt maturity of the company and its subsidiaries. The net proceeds will be swopped into Australian dollars and used by Optus to fund its ordinary course of business, it added. Singtel shares closed at S$4.35 on Tuesday, down 0.2 per cent or S$0.01, before the news. |
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Newbie2025
Senior |
20-Jun-2026 07:41
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Sir, do u mean Singtel may hv an opportunity to buy M1?..😂 😂 😂
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Alignment
Elite |
19-Jun-2026 11:25
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But Simba situation may prompt Australia government to put more pressure on Optus in retaliation? | ||||
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CaiShenDao
Member |
19-Jun-2026 00:31
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Start accumulating, announcements soon, I reckon.
M1 privatisation deal failed to allow Singtel the final bite. Thanks to G&TAhGongs! Watch this space. Standby for rocket launch 🚀 as we head to the moon 🌙 with Towkay Ah MoonMoon Caishendao! HengOngHuatAh |
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seanpent
Supreme |
18-Jun-2026 14:37
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once a while " news" surfaces to setup panic selling
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