Connect with us
//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js (adsbygoogle = window.adsbygoogle || []).push({});

Corporate

Singtel to buy Temasek’s stakes in Thailand’s Intouch and India’s Bharti Telecom

Singapore Telecommunications (Singtel) will spend about S$2.47 billion in cash to buy a 21 per cent stake in Thailand’s Intouch Holdings PCL and a further 7.39 per cent stake in Bharti Telecom (BTL) from Temasek Holdings.

Avatar

Published

on

Singtel today entered into conditional share purchase agreements with Temasek to acquire 21% of Intouch Holdings Public Company Limited (Intouch) and 7.39% of Bharti Telecom Limited (Bharti Telecom) for a total consideration of S$2.47 billion.

The acquisitions will be settled fully in cash. This transaction will be funded through internal cash, short-term debt and proceeds from a share placement of 386 million new Singtel shares to Temasek totalling S$1.605 billion at a price of S$4.16 per new share.

The acquisitions of the stakes in Intouch and Bharti Telecom, as well as the share placement are subject to minority shareholder and regulatory approvals. The acquisitions and share placement are interdependent and have to close at the same time.

Acquisitions will increase Singtel’s economic interests in AIS and Airtel

Intouch is the biggest shareholder in Thailand’s largest mobile operator Advanced Info Services Public Company Limited (AIS). Bharti Telecom is the holding company of Bharti Airtel Limited (Airtel), India’s largest telecommunications company which has operations in 18 countries across South Asia and Africa. AIS and Airtel have been associates of the Group since Singtel acquired stakes in these businesses in 1999 and 2000 respectively. Through these acquisitions, Singtel will increase its economic interests in AIS and Airtel.

Ms Chua Sock Koong, Singtel Group CEO, said,

“Singtel has been a strategic partner to both AIS and Airtel for more than 15 years. We have built deep and trusted relationships, worked well together through the years, sharing knowledge and expertise and we have grown together, from strength to strength. Today, they have a combined mobile customer base of more than 380 million across Asia and Africa. This is a unique opportunity for us to deepen our relationships with two great market leaders.”

The acquisitions are in line with the Group’s long-term strategy to increase its exposure to high-performing associates in its portfolio of leading telecom businesses in the region. Thailand and India are fundamentally attractive markets which are reaping the benefits of rapidly increasing smartphone penetration and mobile data adoption by a growing middle class.

Both AIS and Airtel are well-positioned to benefit from these trends. The recent mobile spectrum auctions in Thailand and ongoing industry consolidation in India have strengthened their competitive positions. They have also built for the future, securing significant spectrum for the long term and investing extensively in 3G and 4G networks and services.

Ms Chua added, “Thailand, India and Africa continue to be attractive, high-growth markets for us. As a Group, we enjoy great synergies, economies of scale, and collaborative innovation.”

Singtel will pay Temasek THB60.83 for each share of Intouch and INR235.62 for each share of Bharti Telecom. The transaction is subject to the fulfilment of certain conditions precedent, including shareholder and relevant regulatory approvals, and is expected to be completed by December 2016.

An independent financial adviser (IFA) will be appointed to advise the independent directors of the Board. The advice of the IFA and the recommendation of the independent directors will be sent to shareholders prior to the convening of a shareholders’ meeting. Temasek is an interested party and will abstain from voting at the meeting.

0/5 (0 Reviews)
Comments

Corporate

Do You Have What It Takes to Work Remotely?

Avatar

Published

on

Two people with speech bubbles above their heads

If you want to be a remote worker, you may need to convince your boss. Daniel Mobbs has the lowdown on the skills required, from effective time management to confident communications

(more…)
4/5 (1 Review)
Continue Reading

Companies

Regulation can hinder not help Asia’s social enterprises, analysts say

Thailand last week passed a new act that gives tax breaks for social entreprises

Avatar

Published

on

As more Asian nations consider laws to promote social enterprises, analysts on Thursday warned that legislation could hold back, not help the growing number of ethical businesses.

(more…)
0/5 (0 Reviews)
Continue Reading

Business

South Korea tops entrepreneurship environment index in Asia

Thailand ranks in 8th position in the 2018 edition of Global Entrepreneurship Index, and 4th of Asean countries, following Singapore, Brunei and Malaysia.

Boris Sullivan

Published

on

South Korea tops the region in entrepreneurship environment with a score of 54%, according to the recently released Global Entrepreneurship Index. (more…)


0/5


(0 Reviews)
Continue Reading

Most Read

Must Read

Subscribe via Email

Enter your email address to receive notifications of new articles by email.

Join 14,335 other subscribers

Trending