Singapore’s state investment firm Temasek Holdings has divested a 2.5% stake in Singapore Telecommunications (SingTel) for SGD1.28 billion (USD1.04 billion), according to unconfirmed sources familiar with the situation. Industry watchers say the government-backed group’s move is part of a wider plan to shift its investments away from some of its traditional areas in the city-state’s financial sector, and re-balance its portfolio to reflect the rising importance of China-based firms which are expected to yield better long-term growth opportunities.
The divestment resulted in SingTel’s share price dipping by 5.1% on the Singapore Exchange on Wednesday, hitting a low of SGD3.16. According to TeleGeography’s GlobalComms Database, prior to the sale Temasek Holdings owned a 54.4% stake in Southeast Asia’s leading telecoms group by subscribers and revenue. The remaining 45.6% is in free float.