SINGTEL&rsquo s Thailand-based associate, Advanced Info Service (AIS), is acquiring two broadband entities for 32.42 billion baht (S$1.27 billion), according to a Monday (Jul 4) bourse filing.

 

For a consideration of 19.5 billion baht, AIS will acquire approximately 7.53 billion shares representing 99.87 per cent of total paid-up shares of Triple T Broadband from Jasmine International subsidiary Acumen Company Limited, via AIS&rsquo 99.99 per cent-held subsidiary Advanced Wireless Network.

 

It will also acquire a 19 per cent stake equivalent to 1.52 billion units of Jasmine Broadband Internet Infrastructure Fund for 12.92 billion baht, valued at 8.50 baht per unit.

 

AIS plans to fund the acquisition with debt, given its sufficient debt headroom. It intends to maintain its dividend policy of a 70 per cent-minimum payout. The transaction is considered an asset acquisition with a total value equivalent to 38.7 per cent of the net tangible asset, based on AIS&rsquo s latest consolidated financial statement as at Mar 31, 2022, it added.

 

Previously on Friday, Maybank had upgraded its rating for AIS to &ldquo buy&rdquo with a 230 baht target price on expectations of the acquisitions. The Singtel associate has been in talks to potentially acquire Triple T Broadband since Q4 of 2021, said Maybank analyst Wasu Mattanapotchanart. 

 

The potential total return (price upside and yield) of 22 per cent supports and represents a significant upside to the 230 baht target price, he said, adding in his report that it is Maybank&rsquo s top sector pick.

 

The acquisitions &ldquo would lead to substantial fixed broadband market share gain without significant impacts on NPV (net present value) and FY23 to FY24E core net profits,&rdquo he said.

 

AIS said in its Monday filing that the share purchase and acquisition of investment units are expected to be completed within the first quarter of 2023.

 

Singapore Telecommunications (Singtel) has refuted the news reports on its subsidiary Optus going public, calling the reports &ldquo highly speculative&rdquo .

 

In a June 27 filing on the bourse, Singtel says it &ldquo wishes to clarify that there are currently no plans to list Optus&rdquo .

 

&ldquo Singtel regularly reviews its strategies to optimise the value of its businesses. Since becoming part of the Singtel stable, Optus has grown to be a leading telco in Australia and is now a significant part of the Singtel Group,&rdquo reads the statement.

 

&ldquo If, and when, there is any information that warrants disclosure, Singtel will, in compliance with applicable rules, make an announcement as appropriate,&rdquo it adds.

 

On June 27, Australian daily The Australian reported that SGX-listed Singtel was weighing an A$8 billion ($7.69 billion)-plus listing, citing unnamed sources.

 

The listing would have been one of the largest-ever listings on the Australian Securities Exchange, where Optus is based at.