SINGTEL
Z74.SI
Singtel - Increasing its stake in AIS and Airtel
- Singtel announced this morning that it has entered into conditional share purchase agreements with Temasek to acquire 21% of Intouch Holdings (Intouch) and 7.4% of Bharti Telecom Limited (BTL) for a total consideration of S$2.47b.
- The acquisition will be settled fully in cash, funded through:
- internal cash,
- short- term debt, and
- proceeds from share placement of 386m new Singtel shares to Temasek totaling S$1.61b at S$4.16/share.
- Singtel will pay Temasek THB60.83 (~S$2.35) for each share of Intouch, which amounts to S$1.59b, and INR235.62 (~S$4.74) for each share of BTL, which amounts to S$884.0m. These acquisitions as well as share placement are subject to minority shareholder and regulatory approvals.
- As the share placement and acquisitions are interdependent and have to close at the same time, we opt to keep our HOLD rating and S$4.26 FV unchanged for now.
- We will update once we have better clarity from management.
Eugene Chua
OCBC Investment
|
http://www.ocbcresearch.com/
2016-08-18
OCBC Investment
SGX Stock
Analyst Report
4.260
Same
4.260
