Singtel to buy Temasek’s stakes in 2 telecoms

The acquisitions give it a unique opportunity to increase economic exposure to high-growth telecom sectors Thailand and India, Singtel said in a filing to the Singapore Exchange (SGX) before markets opened on Thursday (Aug 18) yesterday.
The share purchases in the parent companies of the largest mobile-phone operators in India and Thailand will give Singtel a bigger foothold in the two markets, Bloomberg reported earlier.
In Thailand, Singtel already owns 23 per cent of Advanced Info Service (AIS), while Intouch holds approximately 40.45 per cent of AIS and 41 per cent of Thaicom.
In India, Singtel currently holds a 39.78-per-cent stake in BTL, the parent company of Bharti Airtel. With its planned purchase of BTL shares, Singtel’s stake in BTL will rise to 47.17 per cent.
Singtel said: “Intouch and BTL own assets that are leaders in their respective markets, with strong track records of earnings growth. AIS and BAL BTL have secured spectrum holdings for the long term and invested extensively in their networks. These investments position both companies well to compete and capture the growth in mobile Internet services.
Intouch was formerly known as Shin Corp and in 2006, a Temasek-led US$3.8-billion investment in the Thai telecom company, then owned by the family of former prime minister Thaksin Shinawatra, triggered a political crisis that led to Thaksin’s ouster in a bloodless coup.
In a filing, Intouch Holdings confirmed yesterday that Singtel had announced to SGX that it had entered conditional share-purchase agreements with Aspen Holdings Ltd to acquire 21 per cent of Intouch at Bt60.83 per share.
“However, the completion of the transaction is subject to the fulfilment of certain conditions precedent, including their shareholder and relevant regulatory approvals, and is expected to be completed by December 2016.
“We would like to inform that the company has not received any formal information concerning this matter from the major shareholder. Should there be any further information the company will inform the Stock Exchange of Thailand accordingly.”
Singtel’s latest investments 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.
The deal, subject to shareholder and regulatory approvals, is expected to be completed by December, according to the statement.
Singtel is offering about 1.9 per cent less than Wednesday’s closing price for Intouch shares. Bharti Telecom is closely held. The share placement to Temasek, already the majority shareholder in Singtel with 51 per cent as of May 30, is set at about 1.2 per cent below Wednesday’s closing price.