SingTel mulling IPO for 25% stake in Optus?

14 Jan 2010

Singapore Telecommunications (SingTel) is considering floating a 25% stake in its Australian unit, Optus, via an initial public offering (IPO) that could raise as much as AUD4 billion (USD3.7 billion), according to Dow Jones Newswires. The news agency, citing comments from a number of unnamed sources, reports that the sale process could be started as early as the first half of 2010, although firm timings and the selection of any financial institutions to help with the IPO have not been finalised. It is believed that the sale is being considered as SingTel looks to ‘create a cash war-chest for acquisitions and expansion in markets outside Australia and Singapore,’ according to one of the quoted sources, which also added, ‘Australia is a mature mobile market and SingTel doesn’t see much growth.’ SingTel meanwhile has declined to comment on the matter.

Australia, Optus, Singtel Group