SingTel books SGD96m loss on FET deal

2 Jan 2008

Singapore Telecommunications (SingTel) expects to book an exceptional loss of SGD96 million (USD66.6 million) following its decision to swap its shares in Taiwanese telco New Century InfoComm Tech Co Ltd (NCIC) for a stake in Far EasTone (FET). Under the deal first announced in August 2007, SingTel exchanged its 24.5% holding in loss-making fixed line operator NCIC for a 3.97% equity stake in cellular operator FET. The deal was formally completed today and SingTel will book the loss as an exceptional item in its forthcoming third-quarter results covering the three months ended 30 December 2007. The one-time loss will, however, be offset by a SGD188 million currency conversion gain arising from the reduction of SingTel Australia Investment’s Australian dollar-denominated share capital, it said.

Singapore, Singtel Group